Davos 2026: Ericsson job cuts reflect long-term industry reality, says CEO Börje Ekholm

Ericsson Global CEO Börje Ekholm at the World Economic Forum in Davos, Switzerland on January 20

Recent job cuts at Ericsson are part of a continuous "global efficiency" effort rather than a short-term response to market weakness, President and CEO Börje Ekholm said at the World Economic Forum in Davos on November 20.

Speaking to Moneycontrol, Ekholm said the telecom equipment industry has faced weak demand for years.

“The industry selling telecom equipment to operators has been flat for 20 years. So we plan for the market to continue to be flat in that sense,” he said.

As a result, cost discipline has become a priority for Ericsson.

"We need to make sure that we are cost-efficient in everything we do, and therefore we need to make those adjustments. And, if we've done this in the past as well. So, we try to continuously improve our operations as much as possible," Ekholm said.

Last week, Ericsson said that it plans to lay off around 1,600 employees in Sweden as part of its cost cutting measures.

The company submitted a notice to the Swedish Public Employment Service and informed that it initiatied negotiations with relevant trade unions.

The company in a statement said, "Approximately 1,600 positions could be impacted in Sweden... Initiatives to increase operational efficency will continue across the group but will not be anonunced separately."

The company has been steadily reducing headcount over the last three years to maintain profitability. In 20243, the company announced a global plan to cut 8,500 jobs, equivallent to 8 per cent of its workforce.