The crisis in the technology industry continues. More companies need to test their overly optimistic plans for the pandemic boom in the sector. This time it was Ericsson.
The tech industry is going through a process of painful testing of budgets that have been formed as a result of quarantine times due to the pandemic.
The end of technological Eldorado
The coronavirus pandemic and the restrictions that followed have forced people locked in their homes to buy electronic equipment needed for remote work and education, shop online and subscribe to entertainment services. Most tech giants have had a golden age and record profits. This resulted in a desire to increase the scale of the business and, consequently, large-scale recruitment processes.
The end of the pandemic, as well as the war that broke out almost immediately after the pandemic crisis in the economy was brought under control, meant that things had changed dramatically.
Tech giants are slowing down
The last few months have been a disaster for the tech industry. Most companies have either carried out or announced massive layoffs. Neither Google, nor Amazon, nor Meta, that is, the owner of Facebook, Instagram and WhatsApp, were affected by this. In these places, reductions should be counted not in hundreds, but in thousands. In some cases even 10,000 have been cut. workplaces.
Now Ericsson, which was once known for manufacturing mobile phones, has announced its decision, but with the advent of the era of smartphones, it has focused on the development, including smartphones. solutions for 5G technology.
The company has announced its austerity plan, which also includes very large job cuts. A company spokesman confirmed that 1,400 people will lose their jobs at the headquarters in Sweden, but this is only the beginning of job cuts. The overall plan is to cut the number of employees by as much as 8,500 across all branches around the world.
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.