Ericsson hit by bill of up to $1.7bn as new CEO sets out business overhaul
Stockholm — Sweden’s Ericsson will book up to $1.7bn in provisions, write-downs and restructuring costs in the first quarter as its new CEO outlines his strategy to lead the telecom equipment maker out of its worst crisis in a decade. The sweeping measures mapped out by Börje Ekholm include exploring options for its loss-making media arm, as well as restructuring its business designing, building and managing networks for operators. The Swedish business insider and veteran board member took over as CEO in January and investors have been keen to hear how he plans to deal with shrinking markets and mounting competition from China’s Huawei and Finland’s Nokia. "Restoring profitability is key and we will start by focusing the portfolio on fewer areas and securing effectiveness and efficiency in operations," Ericsson said in a statement on Tuesday. The company said it would take provisions of 7- to 9-billion krona ($797m to $1.02bn) in the first quarter "triggered by recent negative devel...
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