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ERICSSON

Ericsson employees make way for young blood

About 910 Ericsson employees have agreed to leave the telecommunications giant to make room for a new batch of new, young engineers.

The workers, all over 35, will receive 18 months salary, 50,000 kronor in cash and professional help in finding a new job when they quit.

“We have already employed 70 people and are going to hire another 300 this year and as many next year,” said Marita Hellberg, Ericsson’s head of personnel, according to TT. “We had set a ceiling of 1,000 employees (to leave under the deal), so we are happy with the result.”

About 70 percent of those who quit are between 30 and 50 years old, the rest are over 50 years old. The employees come from all over the company and, on average, have been an Ericsson employee for 13 years.

The deal was available to 17,000 of the company’s 21,000 workers in Sweden.

Just the cash offered to those leaving will cost 45 million kronor. The 18 months of salary and counseling has been estimated in the past to approaching 4 billion kronor.

SWEDEN AND UKRAINE

Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.

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