Swedish mobile telecoms gear maker Ericsson parted company with its chief executive Hans Vestberg on Monday, a move led by major shareholders after a series of disappointing results. The company said that Chief Financial Officer Jan Frykhammar had been named acting chief executive. It has also appointed Carl Mellander, currently VP & Group Treasurer, as acting CFO of the company. Ericsson has had to lay off thousands of workers this year in the face of a stagnant market for its products, and last week said it is still looking to drastically cut costs. Its biggest problem is that most operators are done rolling out the current generation of mobile broadband networks, known as 4G or LTE.
Ericsson is currently searching for a successor to Vestberg and said that search process will comprise both internal and external candidates. Vestberg, who has been CEO since 2010, will be available to support the Board and management during his term of notice of six months. “I have had 28 fantastic years at Ericsson, the last seven as CEO. As the industry enters the 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,” Vestberg said in a statement.