Ericsson divests its customer support business in Russia
Ericsson will sell its local customer support business to former Local operational managers.
Ericsson says that its 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 some 40 Ericsson employees and certain assets and contracts related to the business.
Ericsson says in the press release that 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 of Ukraine, Ericsson suspended operations and deliveries to customers in Russia. Approximately 400 Ericsson employees in Russia have been notified of layoffs and have been leaving the company as operations have been discontinued.
Going into the next year, the company says that it 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.