Monday, 25 July 2016

Vestberg takes a bow as Ericsson CEO after dismal Q2

Hans Vestberg today (Monday) stepped down as the Chief Executive Officer and member of the Board of Directors of Ericsson.

The decision for him to quit as head of the Swedish firm was made by the company’s board as the company strives to forge ahead in a stagnant market.

“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,” board chairman Leif Johansson said in a statement.

Hans Vestberg
“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.”

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.

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