Ericsson is restructuring its business and may book charges of up to $1.7 billion in Q1 and the new CEO, Börje Ekholm, appointed in January, has said that it has been ‘spreading itself too thinly’ and would consider selling its media and cloud infrastructure businesses, which have been unprofitable. Ekholm wants to concentrate on the networks, digital services and IT as it tries to compete with aggressive competition from Huawei and ZTE.
Four executives will leave, including Per Borgklint, head of the radio business unit; Anders Lindblad, head of the IT and cloud business unit; Jean-Philippe Poirault, head of the IT solutions and services business. The ten market areas that Ericsson addresses will be reduced to five.
