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Ericsson CEO is not satisfied with growth, will further restructure amid lower sales

Several executives will leave the company, including its head of sales and chief information officer.

Asa Mathat

Ericsson CEO Hans Vestberg announced he was shaking up the company’s corporate structure and executive team amid a drop in overall sales.

“We are not satisfied with our overall growth and profitability development over past years,” Vestberg said in a statement. “We are today announcing further actions to accelerate strategy execution and to drive efficiency and growth across the company even harder. We will create a leaner, more fit for purpose organization … As 5G, the Internet of Things, and Cloud drive the next phase of industry development, the time is just right to make these changes.”

Several executives are leaving Ericsson, including head of sales Jan Wäreby, Chief Information Officer Anders Thulin and head of Asia-Pacific region Mats Olsson. Two other executives will remain at the company but leave the company’s executive leadership team.

The moves come as the company saw quarterly sales decline 2 percent from the prior year, to 52.2 billion Swedish krona ($6.4 billion). Profit margins also declined compared to the prior year, though net income and per-share earnings were up from the first quarter of 2015.

Sales were weak in Europe and some emerging markets, while increasing in North America, China and Southeast Asia.

This article originally appeared on Recode.net.

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