Hans Vestberg has stepped down from his position as president and CEO of Ericsson.
The news comes as no surprise following calls from Ericsson’s main owners and investors for a change at the top after failing to meet market expectations in Q2.
Jan Frykhammar, executive vice president and CFO, will assume the CEO position until a new CFO is brought into office. He is however, ‘not aspiring’ to take charge of the role on a permanent basis.
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."
Chairman of the board, Leif Johansson, said, "Hans Vestberg has led the company for seven years through significant industry and company transformation. He 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."
In conjunction to presenting its earnings report for the second quarter on 19 July, the company presented a strong action plan to significantly reduce cost and adapt to the current market environment.
Johansson added, "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.”