Ericsson AB has entered formal negotiations with Swedish unions to reduce its local workforce by approximately 1,600 positions, representing just over 10% of its home-market staff. The network equipment supplier said the move is part of a broader cost-efficiency programme aimed at lowering annual operating expenses by SEK 5 billion by 2024. The proposed cuts would span across R&D, manufacturing and administrative functions in Stockholm, Lund and Kista, and are expected to yield annual savings of about SEK 1.2 billion once fully implemented. Ericsson cited intensifying price competition in 5G radio access networks and the need to free up resources for strategic investments in next-generation products as key drivers of the decision.