Sweden's Telecom giant Ericsson announced on Friday that it will cut 8,500 jobs worldwide, almost 8% of its 105,000 workforce, as the company aims to slash costs after disappointing returns in 2022.

"We see potential to simplify and become more efficient across the company, especially in structural costs. But we are also working on our service delivery, supply, real estate and IT," Ericsson Spokesperson Jenny Hedelin told AFP.

Most of the layoffs will take place in the first half of 2023 and the rest in 2024, as the company proceeds with its $860 million cost-saving scheme adopted in 2022.

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The company announced earlier this week that 1,400 of the cuts were in Sweden.

According to Ericsson's 2022 financial report, the group's net profit fell by 17.2% to 19.1 billion kronor - or $1.8 billion - as the global economy witnessed an abrupt slowdown in the past few years and rising inflation, which prompted service providers to delay 5G projects.

"It will, however, unfortunately also result in a need to address headcount. We believe a total of 8,500 positions will be affected", Hedelin pointed out.

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