Ericsson names new CEO

Swedish telecoms equipment giant Ericsson announced a new president and chief executive officer in the latest bid to turn around...

Swedish telecoms equipment giant Ericsson has named its new president and chief executive officer.

Carl-Henric Svanberg will replace Kurt Hellström, who is retiring. Svanberg has been serving as the chief executive officer of leading Swiss lock maker Assa Abloy and has no previous experience in the telecom industry.

Svanberg will be expected to keep the Ericsson's restructuring plan on track and keeping costs under control. Ericsson said that it hoped to outsource many of its IT operations and cut staff levels to around 60,000 employees worldwide by the end of the year.

Investors will also expect Svanberg to turn around Ericsson's mobile phone business, which has fallen behind that of competitors Nokia and Motorola.

The investment community had grown frustrated with Ericsson's inability to wring more profits out of the mobile phone business, especially given the continued dim outlook among telecommunications companies.

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