Swedish manufacturer of telecommunications equipment Telefonaktiebolaget LM Ericsson ADR Eric 8,500 employees will be laid off worldwide as part of a cost-cutting measure.

Reuters reports that layoffs are expected to affect North America, with the telecoms industry hit hardest.

Last week the company announced that around 1,400 jobs will also be cut in Sweden.

According to the company websiteit has approximately 105,529 employees worldwide and approximately 11,994 employees in North America.

“The manner in which the downsizing will be managed will depend on local country practice,” Reuters quoted the chief executive as saying Borje Ekholm say in a note.

“Several countries have already announced staff reductions this week,” he said.

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In December 2022, the company announced it would cut costs by $880 million through the end of 2023 as demand in some markets slowed.

“It is our duty to cover these costs in order to remain competitive,” Ekholm said in the memo. “Our biggest enemy right now might be complacency.”

According to Reuters, Ericsson’s chief financial officer Carl Mellander said cost cutting would include reducing consultants, real estate and headcount.

The company has announced that it will start seeing the impact of its cost savings in the second quarter of this year.

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