The sudden fall of the Ericsson CEO is related to the overall denial of the Cisco acquisition?

According to foreign media reports, Ericsson's board of directors has just officially announced that the company's CEO Hans Vesterberg will step down as the company's president, CEO and board members, CFO Jan Frykhammar (JanFrykhammar) as the company's interim CEO, group vice Carl Mellander, the president, assumes the position of temporary CFO, and the above appointment takes effect immediately.

Leif Johansson, chairman of Ericsson, said: “Wehans has led the company through seven years of industry and corporate transformation, creating a strong bond with key global customers, his leadership and energy. Inspiring all Ericsson employees, however, the company's board of directors believes that Ericsson may need a new leader to drive the company's next phase of development, given the current need for the company to accelerate its execution."

In this regard, Wei Hansi said: "I worked in Ericsson for 28 years, and in the last seven years I took the position of CEO. As our industry entered a new brand driven by 5G technology, Internet of Things and cloud computing At the stage, Ericsson is looking for a new CEO to continue to ensure the company's leading position in the industry."

It is reported that Jan Frykhammar, who replaced Wei Hansi as interim CEO, joined Ericsson in 1991 and held several important positions in the company's financial and business control departments. After Wei Hansi stepped down, Ericsson's work of finding a new CEO from inside and outside was immediately launched.

In fact, after the company released a disappointing second quarter 2016 financial report, there were Swedish media reports that Ericsson had a major shareholder who wanted to change its CEO. Not long ago, it was reported that Cisco will acquire Ericsson. In this regard, Wei Hansi immediately said: "We have noticed the recent rumors about Cisco's acquisition of Ericsson in the market, which may be triggered by the announcement of the establishment of a partnership between the two companies. The partnership has been completed for one year. Negotiation, but during this period there was no discussion of any merger or acquisition."

The outside analysis believes that Wei Hansi’s sudden resignation may be related to this incident.

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