Ericsson said it would be ‘distributing work across centralized global hubs,’ but did not specify how many of the jobs would be moved outside Canada, or to which country.Olof Swahnberg/Reuters
Swedish telecom equipment maker Ericsson has laid off a group of Canada-based technical employees, citing a need to streamline costs and a broader strategy to consolidate its global work force.
The employees, who were working in the company’s national operations and technical support centres, were told Monday morning they would be given severance packages and job transition support, with their final work day being Oct. 31.
The job cuts affect about 100 employees, according to people familiar with the matter. The Globe and Mail is not naming the sources because they were not authorized to speak publicly on the matter.
The employees had formerly been working for Rogers Communications Inc., providing services for the company’s cellular towers.
In April, Rogers told about 400 technicians and managers that they had the option either to accept severance packages or sign employment contracts with Ericsson, which it said would then act as a contractor for Rogers.
Ericsson spokesperson Nathan Gibson said Monday’s Canadian job cuts will bring together the company’s network management services team in Canada with the company’s global operations, leveraging common tools, processes and scale.
“Ericsson remains committed to our ongoing investment in our Canadian operations and serving our customers,” he said in an e-mail.
The company said it would be “distributing work across centralized global hubs,” but did not specify how many of the jobs would be moved outside Canada, or to which country.
Half of the former Rogers employees are attempting to form a union, and at least a third of the employees laid off Monday had signed on to join that effort just last week, according to union representatives.
The United Steelworkers Local 1944 filed a certification application in July with the Federal Labour Board to form a field operations bargaining group representing 200 of the 400 former Rogers employees who had transferred to Ericsson. This application is currently pending before the board, Mr. Phillips said.
Last Friday, the union filed on behalf of a group of additional employees supporting the first group, including 37 of the 100 employees affected Monday, according to Michael Phillips, the local’s president.
Managers affected in the transition from Rogers were not affected by Monday’s layoffs.