Ericsson has disclosed a $76 million charge for the last quarter of 2021 as part of its restructuring efforts to increase profitability in its Cloud Software and Services business.
The Swedish telecommunications corporation purchased Vonage, a cloud communications provider, in July 2020 and had previously set a goal for the company to break even in 2023. Ericsson has chosen to terminate some subscale agreements and product offerings as part of a review of its client contracts and portfolio, which will have a $700 million negative impact on its cash flow, largely in 2023.
Carl Mellander, the chief financial officer of the firm, declared that the Vonage acquisition is the company’s “ultimate priority.” On January 20, Ericsson is scheduled to release its fourth quarter financial results.
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