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Hans Vestberg has been pushed out as CEO of telecom giant Ericsson

The move follows significant cost cuts and disappointing earnings.

Asa Mathat

Swedish communications equipment maker Ericsson announced Monday that it will replace CEO Hans Vestberg. CFO Jan Frykhammar will serve in the CEO spot until a new chief is named.

The move follows disappointing earnings and the announcement of a big restructuring effort that saw the exit of several top executives.

"We are not satisfied with our overall growth and profitability development over past years," Vestberg said in April.

The board was apparently not satisfied either, voting this month to oust Vestberg.

"Hans Vestberg has led the company for seven years through significant industry and company transformation," Chairman of the Board Leif Johansson said in a statement. "However, in the current environment and as the company accelerates its strategy execution, the Board of Directors has decided that the time is right for a new leader to drive the next phase in Ericsson's development."

Vestberg has spent 28 years at Ericsson, the last seven as its chief.

Ericsson said it will look both inside and outside for its new CEO. Frykhammar said he is not seeking the top spot permanently.

Vestberg spoke to Recode's Kara Swisher last October on the Recode Decode podcast:

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