Telecom equipment giant Ericsson has announced plans to lay off approximately 1,600 employees in Sweden. This significant headcount reduction is a part of broader global initiatives to improve the company's cost position and enhance operational efficiency. The company has initiated negotiations with trade unions regarding these proposed staff reductions. Ericsson expects a challenging mobile networks market in 2024, characterized by further volume contraction as customers remain cautious with their investments. These challenging market conditions, particularly a slowdown in 5G investments, have impacted Ericsson's sales and profits. Beyond headcount reductions, Ericsson's cost-saving strategy also includes measures such as reducing the number of consultants, streamlining internal processes, and optimizing facility usage. This current round of layoffs follows previous substantial cost-cutting efforts. In February 2023, Ericsson unveiled plans to cut 8,500 jobs globally, which included around 1,400 positions in Sweden. Subsequently, in March 2024, the company announced another round of approximately 1,200 job cuts in Sweden. The ongoing reductions highlight the persistent struggles faced by major telecom network vendors like Ericsson and its rival Nokia, which have been dealing with declining demand for network equipment. Despite these challenges, Ericsson aims to maintain investments critical to its technology leadership while pursuing a higher growth trajectory and long-term margin targets.