Cradlepoint CEO will run new unit for enterprise wireless
Equipment supplier Ericsson has released details of its restructure plans, in the wake of shareholder disquiet over the way it was being run. Its operating units will now focus on mobile infrastructure and business customers. As part of the re-organisation two senior executives will leave the company.
A new Ericsson business unit has been created by blending the existing digital services and managed services divisions, reports Reuters. The plan is to improve its cloud expertise and build products for automation and artificial intelligence.
The unit will be led by Per Narvinger, who has been at Ericsson since 1997.
A new unit for enterprise wireless business will be led by Cradlepoint CEO George Mulhern, which will develop 5G-related products designed to solve the problems of industrial scale businesses. Ericsson bought Cradlepoint in September 20 for $1.1 billion in a bid to strengthen its portfolio of 5G products. its speciality is to invent ways of using wireless edge and wireless WAN equipment to network enterprise and public sector customers with cellular networks without sacrificing the power of cable connectivity.
Ericsson executives, Arun Bansal, currently executive vice president, and Peter Laurin, head of business area managed services, will leave the company. The resignation was first announced in April however, and was described as a chance explore new opportunities. Laurin will take over as CEO of production automation specialist Piab.
The resignation comes after a shareholder revolt at Ericsson’s AGM in which shareholding activist Cevian Capital voted against granting discharge to either Ericsson’s board members or its president Börje Ekholm.
Cevian has previously complained about the way the company is run but the outstanding issue is alleged liability for Islamic State payments based on “unusual expense claims in Iraq” dating back to 2018. At the time, Laurin was Ericsson’s head of business area managed services. As a result of this decisions over payments, top execs could be held personally liable under Swedish law.
The new organisation will take effect June 1.