Ericsson plans roughly 1,600 Swedish job cuts amid cost drive

Ericsson announced plans on Jan. 15, 2026, to cut roughly 1,600 positions in Sweden, submitting a formal notice to the Swedish Public Employment Service and opening consultations with trade unions as part of a broader global cost-efficiency program. The company characterized the proposal as a necessary step to lower structural costs while preserving investments in its core network technology business.

A company statement said “approximately 1,600 positions could be impacted in Sweden.” A company spokesperson described the Swedish notice as “one of several global initiatives aimed at improving the company's overall cost structure to maintain important investments that will secure our competitiveness and technology leadership.” The proposal is subject to the statutory negotiation process in Sweden and the final scope and timing remain unresolved.

Ericsson employs about 90,000 people worldwide as of Dec. 31, with roughly 12,600 based in Sweden. The planned Swedish reductions follow earlier rounds of job cuts: about 1,400 roles in 2023 and another 1,200 in 2024. Management has said group-wide efficiency initiatives “will continue across the group but will not be announced separately.” The company also reduced several thousand roles over the prior year as it reshaped its cost base.

Company leaders framed the action as a strategic realignment rather than a retreat from technology investment. Executives have emphasized the need to protect spending that supports programmable networks, software development and enterprise services even as radio access network sales have softened. Analysts and market participants cite weaker 5G spending cycles and the impact of U.S. import tariffs as pressures that have reduced revenue momentum in certain hardware-dependent areas of the business, prompting a shift toward higher-margin software and services.

The announcement comes ahead of Ericsson’s scheduled fourth-quarter and full-year 2025 results, due on Jan. 23, 2026. Investors reacted positively to the cost plan: shares rose about 1.7% in early Stockholm trading after the company filed the notice. Market watchers are also watching competitors closely as the industry recalibrates growth expectations for 5G rollouts and enterprise connectivity.

The immediate practical consequences for workers and local communities hinge on the negotiation process. Swedish labor law requires consultation with unions and active engagement with the employment service to manage redundancies and redeployment where possible. Ericsson did not disclose the employee or location breakdown of the proposal in its filings, leaving open questions about which sites and teams will be affected.

For Sweden, a country that hosts a significant share of Ericsson’s research, development and operations staff, the proposed cuts underscore broader industrial shifts. The company’s drive to lower costs while pivoting investment toward software and enterprise solutions reflects a telecommunications sector adjusting to slower hardware demand and evolving competitive pressures. How Ericsson balances workforce reductions with its commitment to innovation will shape both its technological leadership and the economic footprint it maintains in Sweden.