In this article, we give answers to the most common questions we receive from our stakeholders about the coronavirus disease (COVID-19).
This article was updated on April 15, 2020.
Ericsson is closely monitoring the development around the coronavirus and follows recommendations from relevant national authorities and international bodies. We are taking precautionary measures to ensure the health and safety of employees, to minimize the impact on the company’s operations and to prevent further spread of the coronavirus.
Our approach is to be transparent towards our different stakeholders about the measures we take and how Ericsson is impacted by the developments.
What impact has Ericsson seen on network traffic?
Recently, there have been drastic shifts in data traffic globally due to COVID-19. For instance, we’ve seen major shifts in data and voice traffic moving from downtown to suburban and residential areas, as a result of lockdowns and less mobility and movement in cities. We’ve also seen a significant rise in mobile voice calls, as well as bi-directional services, such as video calls and tools for smart working. You can read more about the impact on network traffic and Ericsson’s recommendations for service providers in this blog post.
How is Ericsson supporting its customers in this situation?
Mobile networks are increasingly recognized as a critical infrastructure. We are continuing to stay close to our customers to understand their needs and we are doing everything possible to support customers to maximize their network capacity and performance.
Our engineers and field staff are part of critical teams deployed during a crisis. Even when a country goes into lockdown, our engineers are still active in order to keep the networks up and running.
What travel restrictions has Ericsson implemented?
As of February 25, Ericsson restricted non-essential business travel globally. As of February 27, Ericsson implemented guidelines for private travel. Each employee is required to follow instructions from local authorities and discuss their return to work with their manager before returning to the office.
Has Ericsson closed any offices?
During normal circumstances, most of Ericsson’s office workers have the opportunity to work remotely and we have the IT environment to do so in a good way. Decisions about recommending or requiring employees to work remotely are made per site or country and is usually made in coordination with local authorities. Ericsson currently has a large number of employees working from home globally.
Has Ericsson closed any production facilities?
As of today, all Ericsson’s main production sites are up and running.
In line with recommendations from the Chinese authorities, Ericsson’s production site in China was closed until February 9, but has been open since February 10.
What is the impact on Ericsson’s supply chain?
All main Ericsson production sites are currently in operation. Ericsson continues to follow the situation of the Novel Coronavirus and recommendation from the local authorities and WHO, as the company assesses its supply chain. Our prediction remains for Q1, that we will see limited to no impact on our customers. For Q2 2020, our assessment remains that we can cover currently forecasted demands, taking into account known implications and expected outcome from mitigations made following the outbreak.
Ericsson has a global supply chain set up, which ensures the company works close to customers through its European, Asian and American operations. Our main production facilities are in Estonia, Poland, China, India, Brazil, Mexico and the US.
How does Ericsson oversee the development and make crisis management decisions?
As a global company, we have a process and organizational set-up to deal with potential issues that our company may face, both to ensure the health and safety our employees and to minimize impact on our operations. Ericsson’s Group Crisis Management Council is responsible for the handling of major incidents or crises.
Editor’s note: On March 31, 2020, Ericsson held its Annual General Meeting but with a reduced scope. Shareholders were able to follow the meeting via live webcast with pre-recorded speeches by Chair of the Board Ronnie Leten, President and CEO Börje Ekholm and Chief Compliance Officer Laurie Waddy.