Ericsson is laying off about 100 workers in Canada as part of a global restructuring effort, intensifying tensions with employees seeking union representation. Staff were informed on 8 September that their last working day would be 31 October.
The cuts primarily affect technicians and support staff in national operations and technical centres. Many of them had previously worked at Rogers Communications before being transferred to Ericsson earlier this year under a managed-services contract. In April, Rogers gave around 400 managers and technicians the option of severance or moving to Ericsson. Roughly half accepted new contracts, with about 200 later filing to form a bargaining unit under the Federal Labour Board. That application is still pending.
Union leaders said 37 of the employees laid off this week had only joined the unionisation effort last week, raising concerns about the timing. The United Steelworkers Local 1944, which is spearheading the drive, called the dismissals a setback for the affected workers and vowed to challenge them.
Ericsson said the job cuts are part of a broader plan to consolidate managed services operations into global hubs, aiming to streamline processes and reduce costs. The company declined to disclose where the Canadian jobs will be shifted.
The move reflects wider pressures on the Swedish telecom giant, which has faced a sharp slowdown in 5G spending, particularly in North America. In early 2023, Ericsson announced plans to cut 8,500 jobs worldwide, citing weaker demand and the need to centralise functions.
The latest layoffs also add to investor scrutiny, as Ericsson continues to absorb its $6.2 billion acquisition of US cloud communications firm Vonage while battling declining equipment sales.
