Ericsson to lay off 8,500 employees

Telecom equipment maker Ericsson will lay off 8,500 employees globally as part of its plan to cut costs, a memo sent to employees and seen by Reuters said.

On Monday, the company announced plans to cut about 1,400 jobs in Sweden.

While technology companies have been laying of thousands of employees citing economic conditions, this would be the largest layoff hitting the telecoms industry.

"The way headcount reductions will be managed will differ depending on local country practice," Chief Executive Borje Ekholm wrote in the memo.

"In several countries the headcount reductions have already been communicated this week," he said.