Friday, 14 December 2018

Ericsson announces major restructuring, impairments

By Nick Wood, Total Telecom
Tuesday 28 March 17

Swedish kit maker overhauls management; media and IT hardware divisions could be on the chopping block.

Ericsson on Tuesday kicked off a major restructuring that includes overhauling its senior management and a strategic review of its media and IT cloud hardware divisions, as it seeks to revitalise its business. The shake-up will result in a 3 billion kronor-4 billion kronor (€314.68 million-€419.63 million) hit on operating profit, plus restructuring charges of SEK2 billion, in the first quarter alone. It is the second restructuring announced by Ericsson in the last 12 months. "For some time Ericsson has been challenged on both technology and market leadership and the group strategy has not yielded expected returns," said Ericsson CEO Börje Ekholm, in a statement. Ericsson had a year to forget in 2016, as an aggressive cost-cutting programme coupled with a substantial restructuring were not enough to reverse declines in revenue and profitability…

Ericsson on Tuesday kicked off a major restructuring that includes overhauling its senior management and a strategic review of its media and IT cloud hardware divisions, as it seeks to revitalise its business. The shake-up will result in a 3 billion kronor-4 billion kronor (€314.68 million-€419.63 million) hit on operating profit, plus restructuring charges of SEK2 billion, in the first quarter alone. It is the second restructuring announced by Ericsson in the last 12 months. "For some time Ericsson has been challenged on both technology and market leadership and the group strategy has not yielded expected returns," said Ericsson CEO Börje Ekholm, in a statement. Ericsson had a year to forget in 2016, as an aggressive cost-cutting programme coupled with a substantial restructuring were not enough to reverse declines in revenue and profitability…

TT PREMIUM CONTENT

If you are a subscriber login here


To access premium content you need to upgrade your account. To find out more click here

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry