Ericsson Confirms Layoffs in China, Affecting the R&D Department of ‘Core Network’

Last month, Ericsson was reported to be making strategic adjustments to its business in China, with a large number of layoffs in research and development positions. Some employees have confirmed that the “core network” has become a major area for layoffs.

Recently, there have been market rumors that as part of the adjustment to its operations in China, Ericsson has laid off 240 people in China, mainly affecting its research and development center. It is reported that the company plans to further reduce staff in the coming months.

Ericsson said that the layoffs are aimed at aligning with the company’s efforts to diversify its research and development footprint in order to better support its global sales. An Ericsson spokesperson stated that employees in the “core network” R&D department are affected by the layoffs.

Ericsson’s sales in 2023 were 263.4 billion Swedish kronor (approximately RMB 174.6 billion), a year-on-year decrease of 3%. Ericsson’s Chief Financial Officer Carl Mellander stated in an interview in January this year that the company may further consider cost reductions, which may include layoffs.

Regarding last month’s layoff news, Ericsson stated that ‘Ericsson is enriching its global research and development team to be closer to business and users while enhancing software design flexibility and cost efficiency. Ericsson will continue to uphold its commitment to Chinese users and will not exit the Chinese market.’

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