“It has named longtime board member Borje Ekholm, as its new CEO, in a bid to turn around the company amid a decline in the industry,” stated the Swedish company Ericsson on Wednesday, October 25, 2016, according to usnews.com.
“I am very excited about this opportunity. As the networks and applications become even more important, in a 5G connected world, our customers, and the industry, look for continuous innovation,” stated Borje Ekholm, according to cnbc.com.
Borje Ekholm has been working for Ericsson for the past ten years and has finally been chosen to be the CEO of the company. Borje Ekholm will become CEO of the company at January 16, 2017. Borje Ekholm is going to be moved out of Patricia Industries, an investment company that is Ericcson biggest partner, according to wsj.com.
“The reason he was chosen was because Ericsson was looking for a new CEO in July, 2016. Ericsson chose Borje Ekholm because he was a CEO of multiple companies, and was a long time member in the company Ericsson, as well. Also he is an expert on technology and telecommunications, which makes him a better choice to be a CEO for Ericsson,” stated wsj.com.
Analysts have asked questions on how Borje Ekholm can turn back the company from its twenty percent loss on investment. “It’s a relevant question and clearly a consideration,” said Borje Ekholm. He would focus a part of the company’s problem before moving on to the next issue, stated wsj.com.
Ericsson has been facing harsh issues with companies that are trying to take down their cell phone towers. Ericsson cut down twenty percent of the local workforce and three thousand jobs in Sweden, which will save them 1 billion dollars for their global idea in 2017, stated usnews.com.