The Swedish company Ericsson will lay off all employees in Russia by the end of the year. At the end of 2022, the company signed an agreement to terminate the lease for most of the Moscow office effective March 31 of this year. TASS writes about this with reference to the reports of the Ericsson legal entity in Russia.
The office area of the company is more than 4 thousand square meters. m is located on Leningradskoe shosse in Moscow, and the lease of premises has been signed until mid-February 2029.
According to the agency, mapping apps still show the company’s presence in the building. Other Ericsson divisions in the country went out of business last year, the report says.
It also reports that 92% of employees have already been laid off, the rest will be cut before the end of the year. They will be paid severance pay.
The company announced its intention to withdraw from Russia in August last year. According to the report for the second quarter of 2022, such a decision cost 130 million dollars.
At the end of the year, Ericsson announced an agreement to sell the Russian customer service business to former chief operating officers of the subsidiary. Under the terms of the agreement, about 40 employees will transfer to the Russian company. The company will also receive part of the assets and contracts.
As Reuters previously wrote, Russia’s withdrawal of telecommunications equipment makers Ericsson and Nokia will regress the country’s network coverage to the state of the 1990s.
Author:
Natalia Gormaleva
Source: RB
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