Ericsson replaces CEO Vestberg as it begins more cost cutting and focuses on IoT

CFO, Jan Frykhammar becomes Ericsson's acting president and CEO

Ericsson‘s (NASDAQ:ERIC) Board of Directors today announced that Hans Vestberg steps down as President and CEO and member of the Board of Directors of Ericsson with immediate effect.

Jan Frykhammar, currently executive vice president and chief financial officer, will assume the position of chief executive officer until a new CEO takes over.

The chairman of the Board, Leif Johansson says: “Hans Vestberg has led the company for seven years through significant industry and company transformation. Hans has been instrumental in building strong relationships with key customers around the world, and his leadership and energy have been an inspiration to employees and leaders across Ericsson. However, in the current environment and as the company accelerates its strategy execution, the Board of Directors has decided that the time is right for a new leader to drive the next phase in Ericsson’s development.”

Hans Vestberg has already left his post as Ericsson's CEO
Hans Vestberg has already left his post as Ericsson’s CEO

Hans Vestberg says: “I have had 28 fantastic years at Ericsson, the last seven as CEO. As the industry enters a next phase, driven by 5G, IoT and Cloud, it is time for a new CEO to step in and continue the work to ensure Ericsson’s industry leadership.”

The news follows the presentation on July 19 of its earnings report for the second quarter, in which Ericsson revealed a radical action plan. This is designed to significantly reduce costs and adapt the business to a changing market environment.

Johansson adds, “As stated in the report, the Board fully supports the cost reduction plans. In addition, the Board supports the company business strategy and new company structure.”

Effective immediately Jan Frykhammar, EVP and CFO, steps into the position as president and CEO until the recruitment search, which has already begun, has been concluded. As is customary, the search process will include both internal and external candidates.

Frykhammar joined Ericsson in 1991, and has held various positions in finance and business control. In 2009, he became EVP, CFO and head of Group Function Finance. Prior to that he was head of Business Unit Global Services. He holds a Bachelor of Business Administration and Economics from the University of Uppsala, Sweden.

Speaking about Frykhammar, Johansson comments: “Jan has made it clear that he is not aspiring to permanently take on the CEO role. However, I am very pleased that he has accepted this assignment. Jan will secure continued strong execution and leadership in the current situation.”

As a result of Frykhammar’s appointment Carl Mellander, currently VP & Group Treasurer, is appointed acting CFO with immediate effect.

Hans Vestberg will be available to support the Board and management during his term of notice of six months.

Ericsson_logo

RECENT ARTICLES

eSIM connections to exceed 4.5bn in 2027 driven by expanding consumer market, says Kaleido

Posted on: May 16, 2022

London, UK. 11 May 2022 – Kaleido Intelligence, a connectivity market intelligence and consulting firm, has published its latest eSIM Market Outlook report. The study, which examines GSMA-compliant eSIMs across consumer and IoT markets, found that active xUICC (eSIM/iSIM) connections will grow over 1400% between 2022 and 2027, with growth heavily driven by smartphone users.

Read more

Our connected future: Smart building market & predictions

Posted on: May 13, 2022

Increasing government initiatives, growing energy concerns, consumer demands, and various environmental, social and governance (ESG) factors are driving the growth of the smart building market, which is expected to register a compound annual growth rate (CAGR) of over 23% between the period of 2020 – 2025.

Read more
FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more