Sweden's Ericsson is parting company with its chief executive Hans Vestberg, a move led by major shareholders after a series of disappointing results. Grace Pascoe reports.
Ericsson have hit the refresh button. The Swedish mobile telecoms equipment maker ousting Hans Vestberg as CEO after 6 years of service. And bringing in Chief Financial Officer Jan Frykhammar to push buttons before a successor is found. (SOUNDBITE) (English) INDEPENDENT MARKET ANALYST, DARREN SINDEN, SAYING: "They had been struggling. The truth is that they are in a very very competitive marketplace, making telecoms, networking equipment, there are pressures on both ends. They face fierce competition from the likes of Nokia, Huawei but at the same time their end customers, the telecoms service providers are also consolidating." Ericsson's board were unanimous in its decision Which comes after months of criticism against Vestberg's leadership and pay. Weak quarterly results in April sent Ericsson's share price down 15 percent in one day. And just a few days ago more cost cuts were announced as demand drops for its core products. (SOUNDBITE) (English) INDEPENDENT MARKET ANALYST, DARREN SINDEN, SAYING: "The share price I believe touched a seven-year high in the last 18 months but since then I believe it has been downward all the way. And he has also come under scrutiny in the Swedish media and I think reading between the lines the largest shareholders have said enough is enough." And markets mirrored that view - with shares rallying up to 5.9 percent on the news of Vestberg's departure.