Ericsson withdraws layoffs after direct intervention by Italy’s Prime Minister
The Swedish telecommunications giant Ericsson has formally withdrawn its plan to lay off 131 workers at its Genoa research site, following a personal telephone call from Prime Minister Giorgia Meloni to CEO Andrea Missori. The reversal, confirmed during a negotiation table held at the Ministry of Enterprises and Made in Italy (Mimit) on 5 October 2024, averts what would have been the closure of the company’s Optical Research and Development department at Gli Erzelli.
The decision came after months of growing public pressure, with trade unions including CGIL threatening mass mobilisation and political leaders warning of damage to Italy’s strategic technology sector. Meloni’s office stated the intervention was aimed at preventing the dispute from being "instrumentalised" in a way that could harm workers and fuel instability.
Union pressure and corporate justification
Before the reversal, Ericsson had cited a "constant and progressive contraction" of Italy’s telecom market and a global reorganisation of its Engineering Unit Network Management as grounds for cutting 131 roles. The company said the Genoa hub, once a center of innovation for 5G infrastructure, no longer aligned with its evolving corporate strategy.
Meanwhile, CGIL Secretary Maurizio Landini had publicly vowed to "do everything" to protect the workforce — including launching legal challenges against procedures deemed unlawful. The union gathered workers in Genoa and planned a major protest in Rome for 17 October 2024, framing the layoffs as financially unnecessary: "This isn’t a company in crisis," Landini argued, pointing to Ericsson’s continued profitability.
A diplomatic solution: incentives instead of forced exits
Rather than reinstating all roles, Ericsson has agreed to activate consensual exit procedures — offering severance incentives to workers who voluntarily leave. The exact number of departures under this new plan remains undetermined, but it will be managed in dialogue with unions and regional authorities.
Minister Adolfo Urso called the outcome "a step toward collaborative governance," adding that the government will support new industrial planning for the site through upcoming budget measures. For now, the Genoa facility remains open as a research node, though its long-term function will be reassessed over the coming months in consultations with unions and local institutions.
Strategic stakes: why Genoa matters
The Gli Erzelli technology district is one of Italy’s most important hubs for telecommunications R&D, hosting critical expertise in optical networks and software for 5G infrastructure. Losing 131 engineering roles would not only have been an economic blow to Liguria but also weakened Italy’s capacity to compete in Europe’s digital sovereignty ambitions.
While the government did not invoke its "Golden Power" emergency authority — the legal tool allowing intervention in strategic foreign-owned firms — the episode demonstrates how political leverage can shape corporate behavior without formal legal action. Similar cases remain rare across Europe, making this intervention notable in the broader context of national industrial policy in 2024.
Looking ahead: uncertainty persists
Although forced layoffs have been stopped, uncertainty endures. Many of the affected workers may still leave under voluntary schemes, and no concrete commitment has been made to expand or modernise the Genoa site. A follow-up meeting is scheduled for late October 2024, where unions will push for long-term investment guarantees and retraining pathways.
For now, the immediate crisis has passed. But the real test lies ahead: whether Ericsson will continue seeing Italy — and Genoa — as a place to innovate, or merely as a cost center to be trimmed.
