On September 8, 2025, Ericsson announced the layoff of approximately 100 technical employees in Canada as part of a broader cost-cutting and workforce consolidation strategy. Affected staff were informed that they will remain employed until October 31, 2025, during which they will receive severance packages and support for job transitions (The Globe and Mail, Reuters).
Unionization in Progress Amid Layoffs
A recent iPhone in Canada report reveals that many of the laid-off employees are former Rogers cell tower technicians who transferred to Ericsson earlier this year. The United Steelworkers Local 1944 has filed with the Federal Labour Board to represent about 200 of these workers, and 37 of those laid off had signed union cards just the previous week. Because certification was not finalized, these employees are still considered non-unionized and remain entitled to individual severance and wrongful dismissal protections under common law (iPhone in Canada).
According to Ericsson spokesperson Nathan Gibson, this move aims to consolidate the Canadian network management services team into the company’s global operations, enabling more efficient use of shared tools, processes, and scale advantages (The Globe and Mail, Reuters).
Conflicting Layoff Numbers and Offshoring Concerns
A MobileSyrup investigation suggests the scale of layoffs may be larger than officially acknowledged. Employees claim that up to 360 positions could be eliminated in two waves, with some employees staying on staff until January 31, 2026 to help transition their jobs to workers in India. Ericsson disputes this, stating only ~100 employees are affected and denying plans for further cuts.
Workers also allege that severance packages are “bare minimum”, despite many employees having over 20 years of service at Rogers prior to transferring to Ericsson. In contrast, Ericsson says it is offering “above market value” severance and providing transition workshops.
Additionally, employees claim service reliability has suffered since Ericsson assumed responsibility for Rogers’ wireless operations, pointing to major network outages in May and June (MobileSyrup).
These developments highlight the importance of carefully reviewing your severance offer and seeking legal advice as early as possible.
Financial Stability Amid Restructuring
Despite the restructuring costs, Ericsson reported a strong performance in Q2 2025. The company posted an operating profit of 7 billion Swedish crowns (approximately US $748 million), marking a significant recovery from a loss of 11.9 billion crowns a year prior and exceeding analyst expectations. These Canadian layoffs fall within Ericsson’s broader cost-efficiency efforts aimed at strengthening global competitiveness (The Globe and Mail, Reuters).
Severance Packages for Ericsson Employees
If you are laid off from Ericsson, you have reportedly been informed that you will receive a severance package. In Canada, severance is calculated based on several key factors, including:
- Length of service
- Age
- Position held
- Availability of similar employment in the market
It is crucial to carefully review severance offers, as they may not always reflect the full amount an employee is legally entitled to receive. Companies often provide the minimum statutory severance (Ontario Ministry of Labour), which may be far less than what an employee could claim under common law.
Wondering what you’re owed? Use our Severance Pay Calculator to quickly estimate your entitlement based on your age, tenure, and role.
Potential Issues with Layoff Notices
Layoff notices from Ericsson may not always comply with employment laws. Common issues include:
- Insufficient notice periods – Some employees may not have received adequate notice as required by law.
- Improper termination classifications – Some layoffs may be labelled as ‘temporary,’ despite functioning as permanent terminations requiring full severance pay.
- Severance offers that don’t align with legal entitlements – Employers may initially offer severance packages that do not reflect full entitlements under the law.
Wrongful Dismissal and Ericsson Layoffs
If your termination was not handled properly, you may have grounds for a wrongful dismissal claim. This could include situations where:
- You were not given adequate notice or severance pay.
- You were pressured into accepting an unfair settlement.
- The layoff was discriminatory or retaliatory in nature.
If your termination was mishandled, you may have grounds for a wrongful dismissal claim (Ontario Ministry of Labour). Pursuing a wrongful dismissal claim can help you recover additional compensation beyond what was initially offered.
How Monkhouse Law Can Help
At Monkhouse Law, we specialize in employment law and assist employees affected by layoffs. Our team offers:
- A free 30-minute phone consultation to assess your severance package
- Skilled negotiation to help secure fair compensation
- Representation in wrongful dismissal claims if your termination was not handled properly
Contact Us for a Free Consultation
If you are laid off from Ericsson, don’t sign anything before knowing your rights. Contact Monkhouse Law Employment Lawyers in Toronto for a free consultation and ensure you receive the compensation you deserve.