Ericsson Buys Telecom Division of China’s Sunrise Technology
In a bid to shift its focus into telecoms equipment and networks, Ericsson has bought the telecoms division of Sunrise Technology in China
Just less than a week after announcing major redundancies in Sweden, Ericsson has added 1,000 employees to its payroll after buying the telecom division of Chinese IT services company, Sunrise Technology.
“The acquisition of Sunrise Technology's telecom business will boost our ability to serve mobile operators' IT transformation needs in China,” said the Group's Vice President Magnus Mandersson.
“Most of the country's telecom operators ... will soon replace their legacy IT systems with next-generation solutions,” he added, drawing attention to opportunities for growth in the world's largest mobile phone market.
Most of the employees transferred to Ericsson are based in Guangzhou in southern China.
The announcement came just five days after Ericsson announced it was shedding 2,200 jobs in Sweden, reportedly mainly across R&D and supply, in order to cut costs.
Last year the group said it would refocus its business on telecom equipment and networks and abandon modems, which fits well with this strategic move.
Currently, Ericsson employs nearly 120,000 people worldwide.