Ericsson names Vestberg as new CEO

Swedish telecom equipment maker Ericsson announced on Thursday that Hans Vestberg would take over as CEO of the company in 2010.

Ericsson names Vestberg as new CEO

Vestberg, who is currently Ericsson’s Chief Financial Officer (CFO) and Executive Vice President, will succeed current CEO Carl-Henric Svanberg who has agreed to become Chairman of BP, the London-based global energy company.

The 44-year-old Vestberg has been with Ericsson since graduating from Uppsala University in 1991. Since then, he’s held a number of international management positions, including serving as the CFO of Ericsson in Brazil between 1998 and 2000, and in North American from 2000 to 2002.

In 2005, Vestberg was named appointed Executive Vice President, becoming CFO in 2007.

In announcing the news, Ericsson board chairman Michael Treschow praised Vestberg’s career with the company.

“He has a proven excellent understanding of Ericsson’s business with experience from all different Ericsson business activities. He has been instrumental in developing Ericsson’s industry leading services operation which grew threefold with good profitability during his five years of management,” Treschow said in a statement,

Treschow added that Vestberg would take over the helm as Ericsson embarked on a “crucial” phase involving the transformation of telecom operators’ networks and implementation of IP-based services.

Svanberg, who has led Ericsson since 2003, will remain in his position until year-end when he takes on his new assignment as chairman of BP, although he will continue to serve as a member of Ericsson’s Board of Directors.

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Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.