Ericsson restructures biz to sharpen focus on mobile infra business, enterprise opportunities - ET Telecom (2024)

• 3 min read

NEW DELHI: Swedish telecom gear maker Ericsson Wednesday has reshaped its group structure and the executive team, in a move that it said will help execute the company’s growth strategy.

The new changes will come into effect from June 1, 2022, as per an official statement by Ericsson.

The company has merged ‘Business Area Digital Services’ and ‘Business Area Managed Services’ to create a combined unit – Business Area Cloud Software and Services – to propel growth in the mobile infrastructure business and capitalize on the convergence of cloud, software and services.

Per Navinger will lead this new unit as Senior Vice President and head of Business Area Cloud Software and Services. Navinger will also be a member of the Ericsson Executive Team.

Jan Karlsson, currently head of Business Area Digital Services, will leave the Executive Team and instead drive the development of the Global Network Platform, reporting to CEO Börje Ekholm, while Peter Laurin, head of Business Area Managed Services will leave Ericsson for opportunities outside the company, the statement added.

“By combining the two business areas we can coordinate our investments in orchestration and AI solutions leveraging insight from our network operations. This will allow us to remain a technology leader in a constantly evolving market,” said Ekholm.

Ericsson has also created a new ‘Business Area Enterprise Wireless Solutions’ unit, comprising the current Cradlepoint business and ‘Dedicated Networks’ unit.

George Mulhern is appointed Senior Vice President and head of Business Area Enterprise Wireless Solutions and will be a member of the Ericsson Executive Team. Mulhern is currently CEO of Cradlepoint.

Åsa Tamsons will continue in her role as Senior Vice President and head of Business Area Technologies & New Businesses which will continue to focus on developing new business solutions to accelerate growth across Ericsson’s core and enterprise 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.

Ericsson has also added ‘Global Operations’ functions effective group-wide. This will combine the 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 is appointed Senior Vice President and head of Group Function Global Operations and will be a member of the Ericsson Executive Team. Moti is currently working as Head of Group Sourcing.

Lastly, Arun Bansal, Executive Vice President and Head of Market Area Europe and Latin America, will leave the company to pursue other opportunities and will step down from his role with immediate effect.

“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 organization, and in establishing and nurturing some of our most important customer relationships,” said Ekholm.

The Ericsson chief executive said the company, within 2-3 years, intends to achieve its long-term goal of growing faster than the market and an EBITA margin (excluding restructuring costs) of 15-18% for the group.

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