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Ericsson has hired one of its board members to take over as CEO amid sales slump

Börje Ekholm will start in January.

Ericsson

Network equipment maker Ericsson, which has issued multiple profit warnings this year, on Wednesday said it is tapping longtime board member Börje Ekholm to be its next CEO.

Ekholm, who is CEO of investment firm Patricia Industries, will assume the new role on Jan. 17 and remain on Ericsson’s board.

“Having served on Ericsson's Board of Directors for the past 10 years, Börje Ekholm has full understanding of the challenges and the opportunities Ericsson currently faces,” Ericsson Chairman Leif Johansson said in a statement.

True, but that also means Ekholm has presided over the company during its recent woes.

The company ousted Hans Vestberg in July amid its slumping fortunes. Jan Frykhammar, the company’s CFO, has been acting CEO and will stay in that role until Ekholm takes over.

Earlier this month the company warned that its results would be significantly below prior expectations and that it didn’t see things turning around in the near term.

This article originally appeared on Recode.net.