Swedish telecom company Ericsson will lay off 8,500 workers as part of its cost-cutting measures, the company confirmed to CNBC on Friday.

Reuters earlier reported on the layoffs, which will impact roughly 8% of its staff of 105,529 worldwide. The company employs about 11,994 people in North America, according to its website.

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

“The way headcount reductions will be managed will differ depending on local country practice,” the spokesperson said in a statement. “Our aim is to manage the process in every country with fairness, respect, professionalism and in line with local labour legislation. Any impact to employees will be first communicated to them.”

The company is seeking cost reductions at a run-rate of 9 billion Swedish Kronor, or about $860 million, by the end of 2023. Ericsson said it expects to start seeing the effect of its cost savings in the second quarter of this year, CNBC reports.