Ericsson restructures doubling down on enterprise and mobile
Ericsson has announced changes to its group structure and executive team to align with its strategy to become a leader in mobile infrastructure and launch an enterprise business.
“After turning around the company, Ericsson is entering a new phase of growth," said Ericsson CEO, Börje Ekholm.
"The changed group structure that we announce today represents exciting opportunities for our people, our customers and our business and will allow us to continue to grow our core mobile infrastructure business and capitalize on the fast-growing enterprise market."
Despite the confirmed changes, the company says it will continue to invest in research and development (R&D) to maintain its technology leadership.
Effective as of 1 June 2022, the new executive team roles and the new organisation will be comprised of a firstly a Business Area Cloud Software and Services unit formed by merging the company's former business area digital services and business area managed services businesses.
In doing so, Ericsson will be able to better lead in the mobile infrastructure business, enabling its leverage investments in R&D, increase cloud native expertise and build its combined offerings for automation and AI for service delivery.
Per Narvinger, who currently serves as head of product area networks within business area networks, has been appointed senior vice president and head of business area cloud software and Services and will be a member of the Ericsson executive team.
Jan Karlsson, who currently serves as head of Business Area Digital Services, will leave the executive team to lead Ericssson's global network platform, reporting to Ekholm.
"Through the new business area cloud software and services, we provide solutions that will help our customers automate the increasingly complex networks for cost advantages and speed to market," said Ekholm.
"By combining the two business areas we can coordinate our investments in orchestration and AI solutions leveraging insight from our network operations."
At the same time, the company will launch a new business area enterprise wireless solutions. This new unit is comprised of the current Cradlepoint business and dedicated networks, formed to meet the growing needs of enterprises leveraging the established relationships with service providers.
George Mulhern has been named senior vice president and head of business area enterprise wireless solutions and will become a member of the Ericsson executive team. Mulhern currently serves as CEO of Cradlepoint.
Åsa Tamsons will continue in her role as senior vice president and head of business area technologies & new businesses.
"The new business area enterprise wireless solutions will provide the focus and conditions we need to thrive in the enterprise market and secure the next wave of success for this business," added Ekholm.
"We are also excited to continue to invest in new businesses for our long-term growth through the proven model established in business area technologies & new businesses."
Other structural changes include adding a group function global operations that will combine the various support functions that are currently spread across the company, including sourcing, IT, digital transformation, group sales, real estate and the operations parts of the People and finance functions.
Moti Gyamlani, the current head of group sourcing, has been appointed senior vice president and head of group function global operations and will also become member of the Ericsson Executive Team.
“Global operations is created to achieve best-in class customer and employee experience by simplifying and digitalising end-to-end process flows in the company," added Ekholm.
"By creating this function, we will be able to better serve the needs of our customers and better support our people, making us more agile and more competitive."
Lastly the company confirms one standalone executive team change. Arun Bansal, the current executive vice president and head of market area Europe and Latin America, step down from his role to pursue other opportunities, effective immediately.
His replacement, the acting head of market area Europe and Latin America, will be announced in due course.
“Arun has been leading our market area Europe and Latin America for the last five years and has been instrumental in driving change across the organisation, and in establishing and nurturing some of our most important customer relationships. I wish Arun all the best in his future endeavours," said Ekholm.
Overall Ekholm believes that these changes will enable Ericsson to achieve its ultimate goal, "within 2-3 years, we want to achieve our long-term goal of growing faster than the market and an EBITA margin (excluding restructuring costs) of 15-18% for the Group,” he said.