Ericsson has announced that it will phase out its business operations in Russia in the coming months as the Swedish telecommunications equipment maker completes its obligations to customers.
The company, which suspended its Russian operations indefinitely in April, said it has about 400 employees in Russia and will provide financial support to affected workers.
A growing number of Western companies are selling their Russian operations after announcing the suspension of their operations weeks after the Russian invasion of Ukraine.
On Saturday, Dell Technologies announced that it has shut down all Russian operations after closing its offices in mid-August.
Ericsson, which had sent its employees on paid leave earlier this year, also recorded provisions of 900 million kroner ($95 million) in the first quarter for asset impairments and other one-time costs related to the move.
Rival Nokia has already announced its decision to pull out of Russia, affecting around 2,000 employees.
Russian newspaper Kommersant first announced Ericsson’s exit and noted that some of the support staff would move to a new company to be founded by top executives in Russia.
Ericsson did not comment on the new company.
Source: Capital
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