Ericsson restructures, releases two executives

Ericsson has laid out plans to restructure its operations.

The telecom equipment maker is turning focus to its business customers and mobile infrastructure.

Ericsson also announced that two senior executives will leave the company.

Chief Executive Borje Ekholm said the move was aimed at boosting performance rather than cutting costs, and said it was too early to say whether there would be job losses.

Ekholm insisted that the current strategy reshuffle was not linked with the company woes from earlier this year.

A new business unit was created by merging digital services and managed services to build cloud expertise and products for automation and artificial intelligence, to be led by Per Narvinger, who joined Ericsson in 1997.

Another new unit for enterprise wireless business, to be led by Cradlepoint CEO George Mulhern, will develop 5G-related products to meet the needs of big businesses.

Ericsson executives Arun Bansal, currently executive vice president, and Peter Laurin, head of business area managed services, will leave the company.

The new organisation will take effect June 1.