Ericsson announced a corporate reorganization that involves the elimination of its existing two-tiered leadership structure, Executive Leadership Team and Global Leadership Team, and replacement by a single Executive Team. The current structure of ten geographic regions will be simplified into five regions, and the current structure of five market areas will be reduced to three.
Ericsson’s President and CEO, Börje Ekholm, said the company has been spreading itself too thin and needs to focus on its core businesses, and that includes Networks, the radio and radio related services, and Digital Services. Ericsson plans to separate out Managed Services and focus on turning its fortunes around by employing more automation. The company will examine low-performing operations and contracts.
Ericsson is also looking for strategic opportunities for its Media business and for its IT cloud infrastructure hardware business
Börje Ekholm, Ericsson President and CEO, says: “For some time Ericsson has been challenged on both technology and market leadership and the group strategy has not yielded expected returns. In our strategy review we have listened carefully to customers around the world and made an in-depth analysis of our portfolio and performance. To enable us to immediately take action and move with speed in execution we are today outlining our path to restoring profitability and to lead with innovation and best in class solutions in areas we have decided to focus on.”
The following Business Area and Market Area structure will apply to the Ericsson Group as of April 1, 2017:
Business Area Networks; Business Area Digital Services; Business Area Managed Services
Market Area North America; Market Area Europe & Latin America; Market Area Middle East & Africa; Market Area North East Asia; Market Area South East Asia, Oceania & India
Effective April 1, 2017, Ericsson’s Executive Team members will be:
President and CEO – Börje Ekholm
Business Area Networks – Fredrik Jejdling, Senior Vice President, currently head of Business Unit Network Services
Business Area Managed Services – Peter Laurin, Senior Vice President, currently head of Region Northern Europe and Central Asia
Business Area Digital Services – Ulf Ewaldsson, Senior Vice President, currently head of Group Function Strategy & Technology
Market Area North America – Rima Qureshi, Senior Vice President, currently head of Region North America
Market Area Europe & Latin America – Arun Bansal, Senior Vice President, currently head of Business Unit Network Products
Market Area Middle East & Africa – Rafiah Ibrahim, Senior Vice President, currently head of Region Middle East
Market Area North East Asia – Chris Houghton, Senior Vice President, currently head of Region North East Asia
South East Asia, Oceania & India – Nunzio Mirtillo, Senior Vice President, currently head of Region Mediterranean
Technology & Emerging Business – Niklas Heuveldop, Senior Vice President, currently head of Group Function Sales
Finance & Common Functions – Carl Mellander, Senior Vice President, currently acting Head of Group Function Finance & Common Functions
Human Resources – MajBritt Arfert, Senior Vice President, currently acting Head of Group Function Human Resources
Marketing & Communications – Helena Norrman, Senior Vice President, currently in same role
Sustainability & Corporate Responsibility – Elaine Weidman Grunewald, Senior Vice President, currently in same role
Legal Affairs – Nina Macpherson, Senior Vice President, currently in same role
Advisor to the CEO – Jan Frykhammar, Executive Vice President currently in same role
Advisor to the CEO – Magnus Mandersson, Executive Vice President, currently in same role
https://www.ericsson.com/investors
https://www.ericsson.com/assets/local/investors/documents/2017/ericsson-focused-strategy.pdf
