Ericsson plans to fire more than 750 employees from its North American field services operation later this year.
Ericsson announced changes to its group structure and in the executive team. Changes include the creation of a specific enterprise wireless solutions business unit, a combination of cloud and digital services divisions, and high-profile departures from its executive team.
The structural changes will be effective from the start of June and EVP and head of the market area for Europe and Latin America Arun Bansal will leave his role on its top team immediately. No reason was given for his departure apart from an indication he was leaving to pursue other opportunities. Last month, Ericsson announced Managed Services head Peter Laurin was set to depart in August. Also, Jan Karllson is set to leave his current role as head of the business area Digital Services to lead the development of a new Global Network Platform at the vendor.
Changes to the company’s structure include the combination of its digital and cloud and software services divisions into a single unit led by current networks head Per Narvinger, who joins its executive team. The new segment will be called business area Cloud Software and Services. Ericsson explained the rationale for the change is to capitalize on the convergence of software and services and deliver growth in the core business. It added the new division would build services using automation and AI and follows a trend of managed services becoming more software-driven.
The Swedish company also plans to create a specific unit for Enterprise Wireless Solutions comprising assets from acquired business Cradlepoint and its Dedicated Networks products. It will be led by current Cradlepoint CEO George Mulhern, who will also join the Ericsson top team. Alongside the new divisions, Ericsson is creating a Group Function Global Operations segment to bring together various corporate activities currently spread across the business including IT, property, and digital transformation. Its head of group sourcing Moti Gyamlani will lead the unit and join the Ericsson executive team.