General

Ericsson will reduce all employees in Russia by the end of this year and close its representative office

Ericsson will lay off all employees in Russia by the end of this year and close its representative office.

The layoffs will also affect employees.technical support providing work with telecom operators. Ericsson said it will phase out its activities as it fulfills its obligations to customers, while the company promises to provide financial and social support to its employees. The share of Ericsson in the Russian market of telecommunication equipment is about 20%, the company employs 565 employees. The turnover of Ericsson in Russia in 2021 amounted to 4.9 billion rubles. Ericsson's largest customers in Russia are MTS and Tele2. Experts note that the termination of the supply of spare parts may lead to problems with the maintenance of the vendor's equipment. According to experts, up to 15-20% of the installed equipment base requires annual renewal. Some of Ericsson's technical support staff may move to a new company that can continue to service the vendor's equipment.