Ericsson's shares were down 8% early on Friday. They have halved since February last year.Chief Financial Officer Carl Mellander told Reuters that would involve reducing consultants, real estate and also employee headcount.
He declined to say if the job cuts would be similar to 2017 when Ericsson laid off thousands of employees and focused on research to return the company to profitability.Its gross margin for the fourth quarter of 2022 fell to 41.4% from 43.2%. JPMorgan analysts said given the fall in margins and higher investments, they would expect 2023 earnings to decline by a double digit percentage.
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