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22 Dec 2022
After Selling Its Local Support Business, Ericsson Continues Its Exit from Russia
Ericsson has announced that it is continuing its exit from Russia after selling its local support business. The company's long-term focus is to expand its presence in other markets and reduce investments in Russia.
After selling off its customer service unit, the company increased efforts to leave the Russian market. In a statement, Ericsson says that the unit has been sold to a Russian company owned by former employees of the Russian division.
This move follows the sale of Ericsson's Russian activities in service delivery and managed services, as well as associated staff, to Synterra, a telecom solutions provider in Russia. As a result of this transaction, Ericsson's local presence will become significantly smaller, with only key sales and marketing roles retained.
An Ericsson spokesperson commented on the decision to reduce its presence in Russia: "This move is part of our wider commitment to driving digital transformation for our customers worldwide. We remain committed to supporting our customers in Russia as they progress towards their digital objectives."
Also included in the transaction were 40 Ericsson employees and certain assets and contracts related to the business. Ericsson said Russian operators would not export hardware, software, or related services.
This company followed its competitor, Nokia, out of the country due to the difficulties caused by Russia's invasion of Ukraine.
The vendor, following other companies out of the country, such as Nokia, is closing due to the fallout from Russia's invasion of Ukraine earlier this year.
Despite Ericsson suspending business there at the end of February, the company was still exporting to the country as recently as September. However, vendors denied this, noting they only provided software support to a few clients.
The company confirmed that approximately 400 employees had been notified of layoffs due to its exit from Russia.
However, Ericsson will have a presence in this country as a legal entity owned by the vendor and be registered to complete the winding down and fulfill legal, contractual, and administrative requirements.
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