Layoff Wave: Ericsson and Nokia Hit Hard in European Headquarters

A wave of layoffs is sweeping the global telecom industry, affecting both operators and equipment vendors. At the end of last year, major carriers like Verizon, Telefónica, and BT carried out large-scale workforce reductions. Now, telecom equipment giants are following suit: Ericsson plans to cut around 1,600 jobs in Sweden, representing 13% of its local workforce, while Nokia is reducing staff across Germany, France, Greece, and Italy.

These layoffs are driven by a sluggish global RAN (Radio Access Network) market and weak European telecom demand. According to Omdia, the global RAN market peaked during the 5G boom and has since contracted for two consecutive years. Large-scale 6G deployment is not expected until 2028-2029, meaning vendors face several years of low market growth.

Europe, once the stronghold of Nokia and Ericsson, has become the hardest-hit region. Declining revenue contribution, regulatory hurdles, and geopolitical factors are pushing both companies to shift investment focus to North America. Nokia has committed an additional $4 billion in the U.S. to expand R&D and manufacturing, while Ericsson is building a 5G smart factory to serve local clients.

Analysts note that the current market represents the “second half” of 5G, with limited equipment upgrade demand. Vendors must endure this period before 6G deployment potentially brings a new growth cycle.