(MENAFN) On Monday, Swedish-based technology company Ericsson made an announcement regarding its global initiatives aimed at enhancing its cost position. As part of these efforts, Ericsson revealed plans to implement a workforce reduction, resulting in the layoff of 1,200 employees.

The staff reduction will primarily affect Ericsson's operations in Sweden, the company specified. This move signifies Ericsson's commitment to optimizing its organizational structure and resource allocation in alignment with its strategic objectives.

Ericsson predicts "a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious."

The decision to implement staff reductions at Ericsson is framed within the context of the company's broader global initiatives aimed at enhancing its cost position. Despite the necessary adjustments in workforce size, Ericsson emphasizes its commitment to preserving investments crucial to maintaining its technology leadership.

By strategically managing costs while continuing to prioritize key investments, Ericsson aims to sustain its competitive edge in the rapidly evolving technology landscape. This approach underscores the company's dedication to innovation and ensures its ability to deliver cutting-edge solutions to customers while navigating challenges and opportunities within the industry.

"Initiatives to increase operational efficiency will continue during 2024 but will not be announced separately," it further mentioned.

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