The union of Ericsson: “The whole line should be replaced” – Swedish Dagbladet

Hans Vestberg presented the quarterly report as late as last week. Photo: Daniella Backlund

Today left the Board of Ericsson message that CEO Hans Vestberg leave with immediate effect. The decision is a step in the right direction, but it does not relieve the Company from its now misguided corporate culture, says Per Norlander, Chief union negotiator for the Swedish engineers at Ericsson.

– In a first stage, we should be pleased. But it is not about to replace Vestberg as a person, without replacing an entire corporate culture. During his tenure as CEO, he has built up business economic priorities throughout the line so long it makes no difference if Vestberg get go. Then, the entire line to be replaced if it will make any difference, says Norlander SvD Business.

He believes that Ericsson has survived 130 years of technological innovation that led to good sales . The company therefore needs to find a CEO and management that have greater technical profile and put more focus on innovation rather than thinking on hourly rates or moving operations to low-cost countries.

I want not speculate on who it might be, but we want it to be someone who builds company spirit.

– There are very good engineering skills in Sweden and therefore it would be better if Ericsson could make money on premium products, such as Volvo Cars made in Sweden, says Norlander.

the timing to kick Vestberg, in the wake of duplicate cutting programs and layoffs of thousands of workers, however, unexpected, says Per Norlander.

– it is strange that Hans Vestberg first signaling saving programs and layoffs, then is not in place once it is done. Ericsson has to appoint a new leader soon, so that there will be an acting president who runs up saving campaigns for the company, says Norlander, and continues:

– I do not want to speculate who it might be, but we want it to be someone who builds an entrepreneurial spirit, and that can allow for more technology and innovations, says Norlander.

the search process will take many months.

the last six months Ericsson has crippled the stock market in the wake of fierce competition from emerging countries. During the spring SvD Business also reported on corruption suspicions, abuse of lyxflyg, extravagant bonuses and the latest inflated revenue.

It has provoked a growing criticism outcry against CEO Hans Vestberg, but also chairman Leif Johansson, who in four years refused to receive a portion of the salary paid in shares, and would rather take out the salary in cash.

Should Chairman Leif Johansson also get go?

– No, but I think rather that he should appoint a new CEO who has more engineering sense and can make a good bet for the technology in the company.

at Ericsson’s press conference in Kista on Monday morning signaled Leif Johansson also makes it a president with greater technology focus to be recruited to Ericsson.

– We are looking for someone who has good leadership and good technology knowledge. The more experienced the better, said Leif Johansson said at the press conference – but added that it will take a long time before a new CEO is in place.

– The search process will take many months, he said.