CEO leaves all assignments effective immediately. CFO Jan Frykhammar assumes CEO role while Swedish firm finds replacement
Ericsson CEO Hans Vestberg will step down from his role effective immediately, the Swedish telecoms giant has announced.
Vestberg has led Ericsson for more than seven years, but will be replaced by CFO Jan Frykhammar, who will take the reins in the interim while the infrastructure provider finds a replacement.
He leaves just days after Ericsson posted an 11 per cent fall in sales for Q2, while profits fell 24 per cent. It also shed 8,000 jobs in the first half of this year.
Vestberg said: “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.”
Frykhammar, who joined Ericsson in 1991, will step in to the top job immediately while it undergoes recruitment for Vestberg’s permanent successor.
His responsibilities as CFO will be taken on by current VP & Group Treasurer Carl Mellander.
Chairman of the board Leif Johansson said: “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.”