July 25, 2016
Ericsson’s board of directors today announced that Hans Vestberg has stepped down as president and CEO of Ericsson “with immediate effect.” Jan Frykhammar, executive vice president and CFO, will assume the CEO position until a new CEO is in office.
“Hans Vestberg has led the company for seven years through significant industry and company transformation,” said Leif Johansson, chairman of the Ericsson board. “(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 has decided that the time is right for a new leader to drive the next phase in Ericsson’s development.”
Vestberg said in a statement that he 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.”
“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,” Johansson continued.
Effective immediately Jan Frykhammar, executive vice president and CFO, steps into the position as president and CEO until the now initiated recruitment search has been concluded. As customary, the search process will comprise both internal and external candidates, Ericsson said.
Frykhammar joined Ericsson 1991, and has held various positions in finance and business control. “Jan has made it clear that he is not aspiring to permanently take on the CEO role,” Johannsson said.