Ericsson is laying off 2,200 employees, the company announced Wednesday morning. The roughly 2 percent reduction to the company’s global workforce comes as Ericsson attempts to cut costs and transition to a more software-centric business model.
The layoffs will hit employees in Sweden, where Ericsson is headquartered, and will primarily target R&D and supply roles, according to a company statement.
Separately, unannounced layoffs hit Ericsson’s San Jose office in the last week of February, sources tell SDxCentral. San Jose is a major R&D hub for the company.
An Ericsson spokesperson declined to confirm the San Jose staff reductions. “In North America, we are constantly adjusting our workforce to meet the demands of the most competitive market in the world,” the company said in a statement to SDxCentral.
In November, Ericsson announced plans for cost-cutting measures targeting its R&D, service delivery, and supply units. As part of the transition, the company plans to increase focus and investment in cloud and IP networks.
“The pace of change is increasing in the industry, accelerated further by industries converging,” Ericsson said in a statement on Wednesday. “The pace of change is also accelerating in Ericsson.”
At last count, Ericsson employed 118,000 worldwide, with 25,300 in R&D roles.