Ericsson has announced it will cut 1,200 jobs in its home market of Sweden.

The vendor said the layoffs are part of cuts announced earlier this year, with the company citing a "challenging mobile networks market in 2024."

Ericsson HQ
– Getty Images

"In addition to the headcount reduction, the cost-saving initiatives cover various areas such as reduction of consultants, streamlining of processes, and reduced facilities, while Ericsson keeps executing on its strategy to achieve a higher growth trajectory and to reach the long-term margin targets, through leadership in mobile networks and a focused expansion into enterprise," said Ericsson in a statement.

Ericsson confirmed it is in discussions with unions over the layoffs. The vendor added that its aims to "increase operational efficiency will continue during 2024."

The company didn't confirm what segment of the business would be impacted by the job losses, nor did it give a timeframe.

Last year, Ericsson cut 1,400 jobs in Sweden and let go of 8,500 employees globally as part of cost-cutting measures.

Following heavy demand for 5G products in the past few years, buying from telecom companies has eased off, meaning vendors such as Ericsson and Nokia have had to cut costs.

Nokia confirmed in October that it will reduce its overall headcount by 14,000 by 2026. The Finnish giant blamed a weaker demand for 5G kit, in particular in the North American market. Significantly, Nokia lost out to Ericsson on a $14 billion Open RAN deal to US carrier AT&T last year.