Hans Vestberg has stepped down as CEO of Ericsson with immediate effect, following reports he was under pressure from shareholders. CFO Jan Frykhammar will take over until a new CEO is found.
Ericsson chairman Leif Johansson said the board decided that “in the current environment and as the company accelerates its strategy execution”, that “the time is right for a new leader to drive the next phase in Ericsson’s development”. Johanssen said the board fully supports the cost-reduction plans presented by Ericsson last week at its quarterly earnings report.
Vestberg worked 28 years at Ericsson, including seven as CEO. He will still be available to support the board and management during his six-month period.
Frykhammar, who has served as CFO since 2009, said he will not seek the CEO job on a permanent basis. Carl Mellander, currently VP & Group Treasurer, is appointed acting CFO with immediate effect.