In a surprising move, Ericsson is all set to close it’s $1.3 billion facilities, which just opened last year. The disappointing earnings for the third quarter are said to be the reason behind this move and according to the spokesperson for the telecom company, it has two other global communication centers in Sweden.
The 20,000 square foot facility was inaugurated in December 2016 and it was supposed to provide a platform for 20,000 engineers to come together virtually with the help of massive data boxes.
The Quebec government has informed Ericsson to complete all the financial obligations that are pending and repay the loans as per the earlier agreement. They were offered 10 years corporate tax holiday along with cheap Hydro Quebec rates. Guy Pilon, Mayor of the region, said that he had huge expectations for the company as it has simultaneously opened 3 data centers in different locations and expected that the company will bring tax revenues to the government in the future.
The company is probably going to hold a discussion with the government in the next few months and the facility is likely to be closed in 2018.