Thursday , April 18 2024

Ericsson CEO Hans Vestberg steps down after dismal Q2-ET

NEW DELHI: Ericsson said that CEO Hans Vestberg has stepped down as President and CEO and member of the Board of Directors of Ericsson with immediate effect.

Chief Financial Officer Jan Frykhammar was named acting chief executive while the company searches for a successor to Vestberg. The company said that search process will comprise both internal and external candidates.

Vestberg had come under fire in recent months particularly after weak quarterly results in April sent its share price down 15 percent in a single day.

Ericsson’s sales dropped by 7 percent in the second quarter, the seventh quarter in a row with declining underlying sales.

Vestberg, who has been CEO since 2010, will be available to support the Board and management during his term of notice of six months. “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, said Vestberg.

“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,” Chairman of the Board Leif Johansson said in a statement.

In addition, Carl Mellander, currently VP & Group Treasurer, has been appointed acting CFO of the company.

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