Telecom equipment manufacturer Ericsson is set to lay off 8,500 workers worldwide as a cost-cutting measure, according to Forbes citing a memo sent to its employees.

This follows the company's announcement to reduce its workforce in Sweden by around 1,400 positions on Monday making it the latest major company to reduce its headcount amid fear of looming recession.

The workforce reduction by the company, the largest so far in the telecommunication industry comes as part of its plan to save roughly $880 million by the end of 2023.

According to the slowing global RAN (radio access network) market - a major business for Ericsson, has had a major impact on its revenue. It posted a lower-than-expected quarterly profit in January, according to the Wall Street Journal reports.

The company says "the headcount reductions have already been communicated in several countries this week" adding that "how the headcount will be managed will differ depending on the local country practice."

The job cuts add to a wave of corporate layoffs so far this year, with a string of big companies outlining plans to cut thousands of workers as they adjust to slowing growth or respond to weaker demand for their products.