Why Ericsson Layed Off 160 Nigerian Workers

The management of Ericsson Nigeria has explained that it recent sack of about 160 permanent and outsourced staff was as part of the company’s global cost and efficiency programme to achieve a net annual cost savings of about 9billion Swedish Krona.

According to the Public Relations Manager, Sub-Saharan Africa, Ericsson, Toju Egbebi, that the programme would continue till 2017, noting that the redundancy is being carried out across 180 countries where the company operates.

Egbebi added that on July 19, the company announced actions to further save costs as well as intensify reductions in cost of sales activities and adapt its operations to a weaker mobile broadband market.

“This means employees will be affected. The decision to offshore our service is in keeping with our global delivery strategy; certain work may be centralised into global delivery centres. This is to enable improved network availability and quality for consumers, and cost efficient network operations for operators.” she said.

Earlier, Ericsson Nigeria, the local subsidiary of the global telecommunications solutions provider, had disengaged about 160 permanent and outsourced workers in its Network Operating Centre, with effect on Sunday, December 4, 2016.

A copy of the disengagement letter to the permanent workers signed by the Managing Director of the company, Johan Jemdahi reads, “Please be informed that effective December 4, 2016, your position has been declared redundant. We thank you for all your past services to Ericsson. Further information about the redundancy benefits will be communicated to you before the actual termination date.”