Ericsson is laying off about 8 percent of its workforce, around 8,500 employees, to cut costs in the ongoing global macroeconomic conditions, the media reported on Friday.

According to an internal memo sent to employees, the company said the headcount reduction has been conveyed to employees in several countries.

“We see a potential to simplify and become more efficient throughout the company, especially when it comes to structural costs,” a company spokesperson told Bloomberg.

The telecom networking company earlier laid off at least 1,400 employees or 10 percent of its workforce in Sweden after negotiating with unions.

The company said in a statement earlier this week that the company intended to conduct the job cut process through a voluntary program after closing negotiations with employee unions, Barron’s had reported.

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“Reducing headcount is never easy, and we will manage this with the utmost respect and professionalism. Further details are always communicated to the relevant staff first,” Ericsson said.

“The cost savings cover various areas such as reduction of consultants, streamlining of processes, reduced facilities, etc. As previously announced, it will also include head-count reduction,” Ericsson added.

In the Stockholm-headquartered company in December last year said it was aiming to slash costs by $880 million by the end of 2023.

Last month, Ericsson missed expectations for its fourth-quarter earnings.

The company joins a growing list of tech firms that have laid off thousands of employees in recent months.

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It had warned of reduced spending from customers in the US and other developed markets.