(Yicai) March 12 -- Ericsson reportedly said the Swedish telecommunications giant will continue to uphold its commitment to Chinese users and will not withdraw from the local market.

Ericsson is enriching its research and development teams globally to better align with its business and users while enhancing the flexibility and cost efficiency of software design, news outlet Jiemian reported yesterday, citing the Stockholm-based firm.

According to rumors on social media, Ericsson announced strategic adjustments to its China operations at a recent conference. The business power and number of jobs in the country will gradually shrink, with the core network business being fully removed from the country and all staff getting laid off.

Ericsson's R&D center in Shanghai mainly focuses on the core network business, and most personnel will leave by the end of next year, employees were cited as saying.

At the end of last year, workers at Ericsson's R&D site in Guangzhou said on Weibo that the Fifth-Generation Tool R&D team had been completely disbanded, with only the sales and technical support teams remaining.

Ericsson's sales fell 3 percent to SEK263.4 billion (USD25.8 billion) in 2023 from a year earlier, according to its latest earnings report. The figure tumbled 19.7 percent to SEK28.6 billion (USD2.8 billion) in the three months ended Dec. 31 from a year ago.

Ericsson may further consider cost-cutting measures, likely including layoffs, 36Kr reported in January, citing Chief Financial Officer Carl Mellander. Ericsson has five major R&D centers in China, with its relevant R&D investment recently exceeding CNY3 billion (USD420 million) a year, according to the report.

Editor: Martin Kadiev