Ericsson Chief Departs After Profit Plunge

By Matthias Verbergt

STOCKHOLM-- Ericsson AB Chief Executive Hans Vestberg is stepping down, the Swedish telecom-equipment maker said on Monday, as it struggles to remain profitable facing slowing demand and fierce competition.

"Hans Vestberg steps down as president and CEO and member of the board of directors of Ericsson with immediate effect," the company said. Jan Frykhammar, the chief financial officer, will assume the CEO position until a new one is in place, Ericsson said.

On July 19, Ericsson announced further cost reductions and job cuts after posting a 24% drop in second-quarter net profit, as the Swedish telecommunications-equipment maker faces stiff competition and continued weak product demand in most of its markets.

Write to Matthias Verbergt at Matthias.Verbergt@wsj.com

(END) Dow Jones Newswires

July 25, 2016 02:55 ET (06:55 GMT)

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