Ericsson divests its local customer support business in Russia

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Dec 15, 2022, 04:26 ET

Ericsson continues orderly exit from operations in Russia
Local operational managers acquire Ericsson's customer support business in Russia and will provide customer support for mobile operators in Russia
All Ericsson customer engagement in Russia intended to be terminated by end of year

STOCKHOLM, Dec. 15, 2022 /PRNewswire/ -- Ericsson's (NASDAQ: ERIC) wholly owned Russian subsidiary has entered into an asset transfer agreement to divest its local customer support business in Russia to a Russian company owned by former operational managers of Ericsson´s Russian subsidiary.

The transaction includes a transfer of approximately 40 Ericsson employees, and certain assets and contracts related to the business.

The customer support business is a local business engagement that does not involve the export of hardware, software, or related services to mobile operators in Russia.

Following Russia's invasion in Ukraine, Ericsson announced the suspension of operations and deliveries to customers in Russia and an orderly wind-down in accordance with applicable sanctions. Approximately 400 Ericsson employees in Russia have been notified of layoffs and have been leaving the company as operations have been discontinued.

Going into 2023, Ericsson expects to have a small presence in Russia on a local basis. A legal entity owned by Ericsson will continue to be registered to complete the wind-down and to fulfill legal, contractual, and administrative requirements.

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Ericsson divests its local customer support business in Russia