Ericsson sacks CEO Hans Vestberg

Swedish telecom gear maker Ericsson has ousted its CEO and President Hans Vestberg amid fall in revenues and the company putting in place a “strong” action plan to reduce cost. Jan Frykhammar, who is currently Executive Vice-President and CFO, will assume the CEO position until a new CEO is in office. Ericsson, whose performance has suffered in the past few quarters, said, “The time is right for a new leader to drive the next phase in Ericsson’s development.” Vestberg will support the board and management during his term of notice of six months. “Hans Vestberg has led the company for seven years through significant industry and company transformation... However, 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,” Ericsson Chairman Leif Johansson said in a statement on Monday. Last month, Ericsson confirmed that it was cooperating with US authorities in an investigation related to the Foreign Corrupt Practices Act.