Ericsson divests its local customer support business in Russia
Ericsson has announced its exit from operations in Russia by divesting its local customer support business. An asset transfer agreement was established with a Russian company owned by former operational managers, involving approximately 40 employees and related assets. This move comes after Ericsson halted operations in Russia following the invasion of Ukraine, impacting around 400 employees. By the end of 2023, all customer engagements in Russia are expected to cease, though a legal entity will remain to handle administrative duties.
- Successful divestment of local customer support business in Russia.
- Transitioning operations to local management ensures continuity for customers.
- Closure is part of an ongoing exit strategy due to geopolitical tensions.
- Impact on approximately 400 employees due to operational discontinuation.
- Ericsson continues orderly exit from operations in Russia
- Local operational managers acquire Ericsson's customer support business in Russia and will provide customer support for mobile operators in Russia
- All Ericsson customer engagement in Russia intended to be terminated by end of year
STOCKHOLM, Dec. 15, 2022 /PRNewswire/ -- Ericsson's (NASDAQ: ERIC) wholly owned Russian subsidiary has entered into an asset transfer agreement to divest its local customer support business in Russia to a Russian company owned by former operational managers of Ericsson´s Russian subsidiary.
The transaction includes a transfer of approximately 40 Ericsson employees, and certain assets and contracts related to the business.
The customer support business is a local business engagement that does not involve the export of hardware, software, or related services to mobile operators in Russia.
Following Russia's invasion in Ukraine, Ericsson announced the suspension of operations and deliveries to customers in Russia and an orderly wind-down in accordance with applicable sanctions. Approximately 400 Ericsson employees in Russia have been notified of layoffs and have been leaving the company as operations have been discontinued.
Going into 2023, Ericsson expects to have a small presence in Russia on a local basis. A legal entity owned by Ericsson will continue to be registered to complete the wind-down and to fulfill legal, contractual, and administrative requirements.
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