Ericsson has announced it will cut 8,500 jobs, as orders for its 5G technology have been slower than anticipated.

The cuts are part of an overall plan to reduce costs by A$1.28 billion by the end of 2023.

The telecommunications company announced late last year it planned to close facilities, cut third-party consultants, and streamline its processes.

Last week the Swedish company announced plans to cut about 1,400 jobs in its home country. This has been expanded to 8,500, globally – an “acceleration of structural cost reductions efforts”, according to Ericsson.

“The way headcount reductions will be managed will differ depending on local country practice,” Chief Executive Borje Ekholm wrote in a memo to staff.

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

Börje Ekholm, CEO of Ericsson AB, admitted last month at a panel at the World Economic Forum in Davos that the 5G rollout had been “a bit slower than we had hoped for,” before noting, “I also think these types of changes take some time.”

Ericsson warned investors last month that a number of US telecom companies had delayed placing new orders for 5G gear amid economic uncertainty.