Struggling Ericsson has named Börje Ekholm as new CEO, effective January 16, 2017 with full support of the firm’s largest shareholder, Investor.
In July this year former Ericsson’s CEO and president Hans Vestberg was ousted and immediately replaced with the Executive V.P and CFO Jan Frykhammar citing mismanagement and failure to drive the firm to a safer financial standing.
The firm also fired over 3000 of its workforce to cut costs.
“First of all, as the Chairman of the Board of Investor, I would like to thank Börje for his great contributions to Investor during almost 25 years, of which ten as President and CEO, and also as the CEO of Patricia Industries. He has played an instrumental role in making Investor what it is today, not the least when it comes to successfully building our portfolio of subsidiaries. Secondly, representing one of the company’s main owners, I am very pleased to have a new CEO in place at Ericsson, an important company in our portfolio”, comments Jacob Wallenberg, Chairman of the Board of Investor.
Ekholm has worked for Investor for almost 25 years in different roles and enjoys the boards goodwill and the firm expects that with him the firm will have a turn around. Ericsson’s major competitors include Nokia Networks and Huawei, who have both continued to expand across markets compared to dwindling and less understood Ericsson.
In Africa things have not so different. Ericsson in April hired Jean-Claude Geha to replace Fredrik Jejdling as new head of sub-Saharan Africa to help the firm meet its growing consumer demands and capture new markets for the firm on the continent.
As Head of the sub-Saharan Africa Region, Jean-Claude brought on board a wide-ranging experience to further develop Ericsson’s offering and support to the region. Jean-Claude is now driving the firm’s digitalization of industries, transforming established operating and business models creating new opportunities at an increasing pace. This might help Investor save the company.
Investorab.com was founded by the Wallenberg family a hundred years ago, is the leading owner of high quality Nordic-based international companies including Atlas Copco, SEB, ABB, Ericsson and Mölnlycke Health Care.