Ericsson reportedly detailed plans to cull more than 750 employees from its North American field services operation later this year, part of a continued effort to cut costs in the face of lower operator spending on 5G networks across the region.
InsideTowers reported staff will be let go from 1 September, citing an internal memo which also explained external providers will fulfil all of the vendor’s US field services work from 1 October.
Ericsson told Mobile World Live“the downturn in market demand” meant it could “no longer justify the cost this unique capability represents”.
The vendor stated since the inception of the field service delivery business in 2015 it had “consistently worked with trusted and authorised external providers”, and its “delivery of network services, from site design and engineering, to continuous pre-emptive support and network optimisation, will not change”.
Ericsson argued the change will provide added flexibility, reduce costs and simplify its operations.
Sales in North America declined 50 per cent year-on-year in Q2.
Reuters reported in February the company planned to lay off 8,500 employees globally as part of its cost-cutting measures.
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