Ericsson Cuts 1,600 Jobs in Sweden as Telecom Austerity Grinds On
January 15, 2026 · by Fintool Agent
Ericsson+1.28% is cutting approximately 1,600 jobs in its home country of Sweden—about 12% of its domestic workforce—as the telecommunications equipment maker doubles down on cost discipline amid a persistently weak 5G investment cycle.
The company submitted notice to Sweden's Public Employment Service on Thursday and has initiated negotiations with trade unions.
"The proposed staff reduction is part of global initiatives to improve cost position while maintaining investments critical to Ericsson's technology leadership," the company said in a statement.
Third Consecutive Year of Swedish Cuts
This marks the third consecutive year Ericsson+1.28% has announced significant workforce reductions in Sweden:
| Year | Swedish Job Cuts | Context |
|---|---|---|
| 2023 | 1,400 | Part of 8,500 global cuts |
| 2024 | 1,200 | Continued restructuring |
| 2026 | 1,600 | Latest announcement |
The company employed roughly 12,600 people in Sweden as of December 2025, down from a much larger base before the restructuring began. Globally, Ericsson+1.28% has reduced headcount from nearly 100,000 employees three years ago to approximately 90,000 today.
Ask Fintool AI AgentRestructuring Is Working—Margins Prove It
The austerity measures are delivering results. Ericsson+1.28%'s EBIT margin has improved materially, climbing from 4-5% in early 2024 to over 13% in Q3 2025.
| Metric | Q3 2024 | Q2 2025 | Q3 2025 |
|---|---|---|---|
| Revenue ($B) | $6.1* | $5.9* | $6.0* |
| EBIT Margin | 11.8%* | 12.5%* | 13.9%* |
| Gross Margin | 44%* | 48%* | 48%* |
| Net Income ($M) | $376* | $480* | $1,183* |
*Values retrieved from S&P Global
CEO Börje Ekholm has been explicit about the strategic rationale: "Over the last year, we have reduced our total number of employees by about 6% or 6,000, while we had organic growth, and it's good now to see that actually coming through the numbers."
The company noted that cost actions from prior years are now flowing through the P&L, and management sees further opportunities through the consolidation of market areas and—notably—the deployment of AI to improve operational efficiency.
Nordic Rivals Face the Same Headwinds
Ericsson+1.28% isn't alone. Finnish rival Nokia+3.93% announced plans to cut 14,000 jobs globally by 2026 and recently disclosed plans to close its Munich office, eliminating over 700 positions by 2030.
Both companies are grappling with the same fundamental challenge: telecommunications operators have been cautious with 5G investments as they struggle to monetize their network upgrades. The promised "killer apps" for 5G—beyond fixed wireless access and some enterprise use cases—have been slow to materialize.
Ask Fintool AI AgentWhat Management Is Saying
In recent earnings calls, Ekholm has emphasized that Ericsson+1.28% expects the RAN (Radio Access Network) market to remain "broadly stable" for the near term while the company positions for eventual growth through:
- Fixed Wireless Access (FWA): Now serving more than 160 million subscribers globally, with Net Promoter Scores often exceeding fiber
- Network APIs: Enabling operators to monetize network capabilities—fraud detection being an early use case
- 5G Standalone networks: Enabling differentiated connectivity and network slicing for enterprise applications
- Enterprise and Defense: Expanding into adjacent segments beyond traditional consumer mobile
"For the RAN market to return to long term growth, it remains clear that the industry needs new monetization opportunities," Ekholm said in the Q2 2025 earnings call.
Analyst Estimates and Upcoming Catalysts
Analysts expect Ericsson+1.28% to report Q4 2025 revenue of approximately $7.3 billion with EPS around $0.17.* The consensus price target stands at approximately $9.55, roughly in line with the current share price of $9.50.
*Values retrieved from S&P Global
| Upcoming Catalyst | Date |
|---|---|
| Ericsson Q4 2025 Earnings | January 23, 2026 |
| Nokia Q4 2025 Earnings | January 29, 2026 |
Shares of Ericsson+1.28% rose modestly on the news, trading at $9.50, up 0.6% on the day. The stock remains well off its 2021 highs but has stabilized over the past year as margin improvement has become visible.
Ask Fintool AI AgentThe Bottom Line
Ericsson+1.28%'s latest restructuring announcement underscores the difficult position facing the global telecommunications equipment industry. While margin improvement validates management's cost discipline, the company—like its peers—remains in search of the demand catalyst that will return the sector to sustainable growth.
The company has proven it can maintain profitability in a flat market. The question now is whether the strategic bets on network APIs, enterprise connectivity, and 5G standalone deployments can ultimately drive the top-line growth investors are waiting for.