Ericsson is changing how it runs its business in Europe by ending its Iberia unit and moving Portugal into a bigger group that includes Western European countries like France, the Netherlands, and Belgium. Before, Portugal was part of the Iberia Customer Unit along with Spain. Now, it is part of a new Western Europe division.
This change is part of a bigger plan to simplify Ericsson’s operations in Europe.
The number of customer units in Europe will go from seven to fewer than four. It also shows a new strategy globally. Europe is no longer grouped with Latin America but is now part of the EMEA region, which includes Europe, the Middle East, and Africa. This region is now led by Patrick Johansson, who is based in Saudi Arabia.
Ericsson says the changes are meant to make operations more efficient and avoid doing similar work in different places.
There are no plans for a big layoff in Portugal, but the company hasn’t said it won’t cut some jobs. In Spain, there are already changes happening. The company is working on reducing its workforce by about 300 people, which is roughly 13% of the local staff.
This restructuring is part of a trend in the tech industry.
Earlier this year, Microsoft also combined its operations in Portugal with other countries like Turkey, Greece, and the Balkans, ending Portugal’s status as a separate business.
Even though Ericsson says there are no immediate plans for layoff in Portugal, some local experts believe some positions have already been affected.
The company has not confirmed these claims.
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