Ericsson’s current CEO Hans Vestberg stepped down Monday with immediate effect, and will be replaced temporarily by Jan Frykhammar, executive vice president and CFO, till a new CEO is appointed.
Chairman of the Board Leif Johansson said, “Hans Vestberg has led the company for seven years through significant industry and company transformation. 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 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.”
In conjunction to presenting its earnings report for the second quarter on July 19, the company presented a strong action plan to significantly reduce cost and adapt to the current market environment.
Carl Mellander, currently VP & Group Treasurer, has been appointed acting CFO with immediate effect.