Ericsson is cleaning house, so to speak, with the departure of two executives and a reshuffling of others.
CEO Börje Ekholm told Reuters the moves are part of plans to boost performance as opposed to cutting costs and that it’s too early to say whether there would be job losses.
He also told the news agency that the current reshuffle isn’t linked to events earlier this year regarding the company’s conduct in Iraq and potential fines from U.S. regulators.
Rather, it’s all about leading in mobile infrastructure and establishing a presence in the enterprise segment, according to his statements.
As part of the announced changes, Arun Bansal, currently EVP and head of market areas for Europe and Latin America, will leave the company immediately to pursue “other opportunities.” He’s been with Ericsson since 1995 and in his current role for the last five years. No replacement has yet been named.
It was already disclosed last month that Peter Laurin, head of Business Area Managed Services, will leave Ericsson in August.
Otherwise, new executive team roles take effect June 1.
Cloud software & services
Ericsson is merging its Business Area Digital Services and Business Area Managed Services to create a Business Area Cloud Software and Services unit. The company said this will enable it to capitalize on the convergence of cloud, software and services.
The Managed Services department has undergone a significant transformation in recent years with the introduction of the AI-driven Ericsson Operation Engine, enabling “proactive and predictive network and IT operations and optimization” and a shift toward a more software-driven offering, Ericsson said.
Per Narvinger was appointed SVP and head of Business Area Cloud Software and Services. Narvinger is currently head of Product Area Networks within Business Area Networks.
“Through the new Business Area Cloud Software and Services we provide solutions that will help our customers automate the increasingly complex networks for cost advantages and speed to market. By combining the two business areas we can coordinate our investments in orchestration and AI solutions leveraging insight from our network operations. This will allow us to remain a technology leader in a constantly evolving market,” Ekholm said in a statement. “I look forward to working with Per as we take the next steps in reaching Ericsson’s growth ambitions. I also want to thank Jan and Peter for their contributions to the Executive Team. They have both been instrumental in executing on our focused strategy and Ericsson’s turnaround.”
Cradlepoint & enterprise
Ericsson’s new Business Area Enterprise Wireless Solutions, comprised of the current Cradlepoint business and Dedicated Networks, will focus on enterprises. George Mulhern, currently CEO of Cradlepoint, has been appointed SVP and head of Business Area Enterprise Wireless Solutions.
The company cited recent success such as strong growth for Cradlepoint in the U.S. C-band deployment and launch of Ericsson Private 5G in several markets.
Åsa Tamsons will continue in her role as SVP and head of Business Area Technologies & New Businesses, which will continue to focus on developing new business solutions, building on the model established to incubate new growth businesses, such as Dedicated Networks and Cradlepoint.