Ericsson Expects Choppy 2023 Despite Q1 Uplift

Ericsson warned of an uncertain environment during 2023 with operators in established markets remaining cautious on capex, although its revenue in Q1 was boosted by equipment sales in emerging 5G markets including India.

The Swedish vendor described 2023 as choppy with poor visibility, but predicted a gradual recovery in the second half as inventory adjustments are completed and cost reduction activities start flowing through the P&L.

 
Ericsson increased its cost-reduction target by SEK2 billion ($194.2 million), now expecting to hit SEK11 billion in savings by the end of 2023.

However, after announcing plans in February to lay-off 8,500 employees including 1,400 in its home market, EVP and head of business area Networks Fredrik Jejdling told Mobile World Live the increased savings target would not mean more staff cuts.

Ericsson also expects operators to invest in networks later in the year “to avoid deteriorating quality” as they see underlying traffic growth.