Ericsson is laying off about 100 employees in Canada as part of its global cost-cutting drive, further straining relations with staff pursuing union representation. Workers were notified on 8 September that their final day will be 31 October.
The job cuts affect technicians and support staff in national operations and technical centres. Many had previously been employed at Rogers Communications before moving to Ericsson earlier this year under a managed-services agreement. In April, Rogers offered around 400 managers and technicians the choice between severance or transferring to Ericsson. Roughly 200 accepted new contracts, with many later filing to form a bargaining unit under the Federal Labour Board—a process still underway.
Union leaders noted that 37 of the employees laid off had only joined the unionisation effort last week, raising concerns over the timing. The United Steelworkers Local 1944, which is leading the organising drive, criticised the dismissals as a setback and vowed to contest them.
Ericsson stated the layoffs are part of a broader plan to consolidate managed services into global hubs, streamlining processes and reducing costs. The company did not disclose where the affected Canadian roles will be relocated.
The move comes as the Swedish telecom giant faces mounting challenges, including slowing 5G investment in North America. In early 2023, Ericsson announced plans to eliminate 8,500 jobs worldwide, citing weaker demand and the need for centralisation.
The Canadian layoffs add to investor scrutiny as the company integrates its $6.2 billion acquisition of US-based Vonage while contending with declining equipment sales.
Get it on Play Store