Ericsson’s credibility on the line
New CEO Borje Ekholm’s first order of business will be evaluating the company’s costs, product offering as well as its competitive situation
Stockholm — Borje Ekholm, the veteran executive brought in to turn around Swedish network-equipment maker Ericsson, faces tough decisions on staffing, competition and balance sheet management that will test the former Investor chief’s ability to right the ship after a tumultuous 2016. Ekholm, a long-time board member at Stockholm-based Ericsson, takes over as CEO on Monday at a company that saw its share price plummet 35% in 2016 amid revenue declines, fierce competition from Chinese rivals and dwindling carrier spending as large investments in fourth-generation wireless gear largely wound down. Ericsson’s biggest investors, Sweden’s Industrivarden and Investor, ousted former CEO Hans Vestberg after he failed to predict last year’s downturn, missed financial targets and reacted too slowly to a collapsing market. Since then, a caretaker CEO has continued cutting costs but offered little clarity. For that, investors have been waiting for Ekholm, who led Investor, the Wallenberg family...
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