Ericsson to shut major research centre in Nanjing as it cedes market share to rivals in China: Report

Swedish telecoms gear maker Ericsson will shut down one of its five research centres in China and plans to transfer 630 employees to a partner company, TietoEVRY, South China Morning Post reported citing two people aware of the matter.

One of the sources informed the publication that employees at the eastern Nanjing-based centre have received a proposal to move to the partner company which is a Finnish software provider, having offices in China.

TietoEVRY has agreed to match the payout of Ericsson employees affected by the move, while those who decline will receive a severance package, the report added.