Ericsson (ERICb.ST) on Friday reported lower than expected fourth-quarter core earnings as sales of 5G equipment slowed in high-margin markets such as the United States, sending the Swedish company’s shares to their lowest since 2018.
Ericsson is the latest tech company to show the impact of customers tightening belts amid concerns about a global economic slowdown. Others have already been cutting jobs, including Microsoft (MSFT.O) which said it would eliminate 10,000 jobs and take a $1.2 billion charge to earnings.
Ericsson’s shares were down 8% early on Friday. They have halved since February last year.
The company has already announced plans to cut costs by 9 billion crowns ($880 million) by the end of 2023.