PRESS: Ericsson to shut down Russian office, fire staff by end 2022

MOSCOW, Aug 29 (PRIME) -- Swedish telecom equipment maker Ericsson will close its representative office in Russia and lay off all the employees by the end of 2022, business daily Kommersant reported on Monday quoting market sources.

Ericsson notified its local office of its closure by the end of 2022 on August 22 and that all its employees, including those in technical support of equipment on networks of the connection operators, will be fired, the sources told the daily.

The company confirmed that it will curb down its activities in Russia in the coming months promising “financial and social” assistance to its staff.

Ericsson set up its Russian firm in 1994, and its 2021 revenue amounted to almost 5 billion rubles with the net profit of 533 million rubles. The company employs 565 people. The share of Ericsson on the country’s market of telecom equipment accounts for about 20%.

The company has worked with the largest Russian connection operators. After the start of the special operation and the introduction of international sanctions, Ericsson and its Finnish counterpart Nokia announced about the termination of shipments to Russia.

(60.0924 rubles – U.S. $1)

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