Ericsson (NASDAQ:ERIC) stock climbed in early trading Thursday after the company revealed plans to cut jobs in Sweden.
The moves aim to sharpen the telecom gear maker's competitive edge while protecting its core tech investments.
This follows a broader workforce slide that also showed up in Ericsson's latest quarterly employee tally.
Job Reductions Planned
Ericsson said it has filed a formal notice with Swedish authorities about potential layoffs. The company estimates that up to roughly 1,600 positions across its Swedish workforce could be affected. Management has opened dialogue with local trade unions to discuss the proposal.
Why It's Happening
The company said the reductions are meant to lower structural costs while still pushing forward on critical network technology projects.
The latest move comes after a steady employee count decline over the past year.
Ericsson reported about 89,898 workers at the end of the third quarter of 2025, down from 91,937 as of June 30, 2025. A year earlier, the head count was nearly 96,000.
Market And Sector Peers
According to Benzinga Pro, ERIC stock has gained over 9% in the past year.
Investors can gain exposure to the stock via iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:IDGT).
Investors also watched peers such as Nokia Corp. (NYSE:NOK) and Cisco Systems, Inc. (NASDAQ:CSCO) trade in tandem with Ericsson. Both companies operate in global networking and telecom equipment markets and may face similar efficiency pressures.
ERIC Price Action: Ericsson shares were up 1.28% at $9.50 during premarket trading on Thursday, according to Benzinga Pro data.
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