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Ericsson Announces 240 Layoffs In China
https://www.whatjobs.com/news/usa/us-business-news/ericsson-announces-240-layoffs-in-china
By Nithya Bose in Business News, posted April 24, 2024
Ericsson is cutting 240 jobs in China as part of an ongoing reorganization that impacts one of its key global research centers.
A spokesman said the layoffs will hit its core network research and development (R&D) division in China.
It aligns with the company’s strategy to diversify its R&D efforts to correspond more closely with its worldwide sales.
The company informed employees about the move during an internal meeting held in early March.
It plans to extend the transformation of its Chinese operations through 2025.
Sources said further staff reductions are expected in the coming months.
Recently, the R&D team in China has been noticeably absent from major projects in the US and Australia.
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Ericsson, a major Swedish telecom equipment maker, has seen its market presence shrink in China during the 5G transition.
It faced fierce competition from local firms such as Huawei.
Rising geopolitical tensions compound this challenge.
The company employed 9,950 people in China as of last year.
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