Ericsson (NASDAQ:ERIC) has announced that it will record a substantial non-cash impairment charge of SEK 11.4 billion in the second quarter of 2024.

This charge primarily reflects reduced expected market growth within the current portfolio of Vonage, a business segment under Ericsson.

The impairment will impact the net income and will be reported within the Enterprise segment.

Niklas Heuveldop, Head of Business Area Global Communications Platform and CEO of Vonage, commented on the adjustment, stating, "Given deterioration in the market environment and elective decisions we have made to refocus our investments in strategically prioritized areas, we have reassessed certain growth assumptions, resulting in a non-cash impairment of SEK 11.4 billion."