Ericsson stock recovers after new boss is named

6 Feb 2003

Swedish telecommunications giant Ericsson has seen its share price rise by 11pc following the announcement that the company has named Carl-Henric Svanberg as its new chief executive.

Svanberg, who has a reputation as a cost cutter but has no experience in the telecoms industry, will take over from Kurt Hellstrom who has been president of company since 1999 and CEO since 2001.

The company, the world’s biggest producer of mobile networks, employs around 1,500 people in Ireland at Clonskeagh, Dun Laoghaire and Athlone.

Svanberg is due to take up his position on 8 April.

Earlier this week the company’s stock plummeted more than 20pc after it reported disappointing fourth-quarter earnings and said it expected a further falling in sales this year.

The telecoms sector has been badly hit by the falling demand for equipment from operators who themselves are struggling with massive debts.

The company is planning to reduce its total workforce to less than 60,000 by the end of this year from just over 64,000 at the end of last year.

By Suzanne Byrne