Ericsson expelled its Chief Executive Officer (CEO) Hans Vestberg after a series of disappointing quarter earnings results. Vestberg served as the CEO for more than six years.
In a statement released yesterday, Swedish wireless-networking equipment maker said, “In the current environment and as the company accelerates its strategy execution, the board of directors has decided that the time is right for a new leader to drive the next phase in Ericsson’s development.”
Chief Financial Officer Jan Frykhammar will be CEO until a replacement is found.
“If we can, we would like to find someone who has a good technology background, and of course, the more proven that person is in terms of leadership, the better,” Ericsson chairman Leif Johansson said.
Ericsson is undergoing a turbulent period that the company was fiercely cutting jobs. It was facing tough competitions from Huawei and Nokia and reported four consecutive quarter revenue and profit fall. In the Q2 Earnings, Ericsson yielded an 11% annual fall in net sales.
Last week, Ericsson faced an alleged accusation from a Swedish media that the company is inflating sales by booking revenue before some clients are invoiced.
“This was a discussion that has developed over the past couple of weeks so therefore there was no element of surprise,” Johansson added about the departure of Vestberg. “We took the initiative to separate.”
Vestberg started his career in Ericsson in the year 1991 after he graduated from the business school. He headed the company’s global division from 2003 to 2007 after serving the company in China, Sweden, Chile, and Brazil. He became the CEO in 2010.