Last month Ericsson reported that it was making strategic adjustments to its business in China and that there were large-scale layoffs in R&D positions. Some employees confirmed that the “core network” had become the hardest hit area by layoffs.
Recently, there are market rumors that Ericsson has laid off 240 employees in China as part of its business adjustment in China, mainly affecting the Chinese R&D center. It is reported that the company plans further layoffs in the coming months.
According to Jiemian News, Ericsson stated that the layoffs are aimed at aligning the company’s efforts to diversify its R&D footprint to better align with its global sales. An Ericsson spokesman said employees in the “Core Network” R&D department were affected by layoffs.
Ericsson’s sales in 2023 will be 263.4 billion Swedish krona (approximately 174.6 billion RMB), a year-on-year decrease of 3%. Ericsson Chief Financial Officer Carl Mellander said in an interview in January this year that the company may further consider cost reductions this year, which may include Layoffs.
According to previous reports, in response to the news of layoffs last month, Ericsson said, “Ericsson is enriching its R&D team globally to get closer to business and users, while improving the flexibility and cost efficiency of software design. Ericsson will continue to adhere to its Chinese users’ commitment is not to withdraw from the Chinese market.”
