Telecom gear maker Ericsson warned on Wednesday that one-off charges of around 800 million Swedish crowns ($76.1 million) at its Cloud Software and Services business would weigh on fourth-quarter results.
“Following a portfolio and customer contract review, the Company has decided to exit certain subscale agreements and product offerings,” it said in a statement.
The exits were part of Ericsson’s previously announced strategy to boost the performance of its cloud software and services business, the company said.
The Swedish group, which is due to publish its fourth-quarter earnings report on Jan. 20, said its cash flow would take a 700 million crown negative hit from the actions, mainly in 2023.
It said it aimed for the cloud software and services business to reach break-even in 2023 at operating profit level.
Shares in the company were up 1.5% at 1151 GMT.
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