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Ericsson reshuffles and names new COO

Per-Arne Sandstrom to take heat off CEO

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Ericsson has had a management reshuffle and appointed a new chief operating officer, Per-Arne Sandstrom.

Mr Sandstrom is currently the head of Ericsson's US marketing department and will move into the job on 1 September. Meanwhile, head of the global systems unit Mats Dahlin will go to EMEA markets division; head of the multi-services network unit Einar Lindquist goes to GSM; and Aake Persson goes to CDMA. And if that means anything to you, you know more about Ericsson than we do.

What's more interesting is why Per-Arne has been taken on. Ericsson's CEO Kurt Hellström has been under heavy pressure recently because of the company's poor performance. So, while he gets on with trying to navigate it into the future, Per-Arne will take some of the grief.

Ericsson is creating five new units that will concentrate solely on its main customers: Deutsche Telekom, France Telecom, Telefonica, Telecom Italia Mobile and Vodafone. Its five geographic divisions will also be reduced to three. "Our new organisation will put even more emphasis on serving our customers, reduce complexity, and more efficiently apply our resources," said Kurt.

It you want to try to make sense of the company's official statement, feel free to go here. ®

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