Ericsson announced a corporate restructuring aimed at capitalizing on the convergence of software and services and delivering growth in the core business. Arun Bansal, Jan Karlsson and Peter Laurin will leave the Executive Team.
A new Business Area Cloud Software and Services is introduced, combining Business Area Digital Services and Business Area Managed Services. Per Narvinger will head up the unit and will be a member of the Ericsson Executive Team.
A new Business Area Enterprise Wireless Solutions, comprising Cradlepoint and Dedicated Networks, is created to drive the growth plan for enterprise. George Mulhern is appointed head of the unit and will be a member of the Ericsson Executive Team.
To simplify and digitalize overall ways of working, a new Group Function Global Operations is introduced. Moti Gyamlani will head up the unit and will be a member of the Ericsson Executive Team.
Following the new group structure, Ericsson will have the following reporting segments:
- Segment Networks (unchanged)
- Segment Cloud Software and Services (corresponding to former Digital Services and Managed Services)
- Segment Enterprise (Enterprise Wireless Solutions and Technologies & New Businesses). On completion of the acquisition, Vonage will form a separate Business Area included in this segment.
- Segment Other (including media businesses and one-offs)
The new segment reporting structure will be applied from Q3 2022.
“After turning around the company, Ericsson is entering a new phase of growth. 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. 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. I look forward to working together with the new Executive Team, and the whole Ericsson team, as we accelerate our work to execute on our strategy, strengthen our company culture and continue to grow the company with increased profitability”, states Börje Ekholm, Ericsson's CEO.
