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Swedish telecommunications company Erickson to lay off 8,500 workers as part of cost-cutting measures, the company confirmed to CNBC on Friday.

Reuters previously reported the layoffs, which will affect about 8% of its 105,529 employees worldwide. According to the company’s website, it employs about 11,994 people in North America.

An Ericsson spokesman said the cuts were part of an “acceleration of structural cost reduction efforts,” as announced during the company’s Capital Markets Day on Dec. 15. The spokesman said most of the layoffs would take effect in the first half of 2023, but could continue into 2024.

“Management of staff reductions will vary depending on local practices in the country,” the press secretary said in a statement. “Our goal is to manage the process in each country with integrity, respect, professionalism and in accordance with local labor laws. Any impact on employees will be communicated to them first.”

By the end of 2023, the company aims to cut costs by SEK 9 billion, or about $860 million. Ericsson said it expects the savings to take effect in the second quarter of this year.

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