Sweden's Ericsson will shut down its representative offices in Russia by the end of the year and lay off all employees, Russian business newspaper Kommerstant reported on Aug. 29.
The company will dismiss all of its employees, including those who provide technical support for the telecom operators’ networks.
The company itself confirmed that "as it fulfills its obligations to customers" in the coming months, it would gradually cut its activities in Russia. Employees are promised "financial and social" support.
Ericsson used to work with the largest mobile phone operators in Russia. MTS and Tele2 have been major customers of the vendor's equipment in recent years.
According to the Kommerstant’s source, problems may arise for Russian telecom operators due to the absence of spare parts for base stations, as it is no longer possible to obtain them from Ericsson under warranty. For now, telecom operators will use previously purchased spare parts, but these are limited.
According to experts interviewed by the publication, telecom equipment depreciates during use – on average equipment lasts five to seven years. That means that up to about 15-20% of installed base equipment may require replacement annually.
In April, Ericsson announced that it was suspending operations in Russia. In February, the Swedish company announced that it was suspending the supplies.