Ericsson to take large provisions as new CEO sets out strategy

Helsinki

ERICSSON AB will book as much as 15 billion Swedish kronor (S$2.4 billion) in extra costs in the first quarter as new chief executive officer Borje Ekholm resizes the wireless network maker for leaner times.

Mr Ekholm, who took over in January, is cutting costs and narrowing the company's focus as he contends with contract losses in Italy and Russia and four straight quarters of revenue declines. Ericsson will explore options for its media business, and Mr Ekholm will also remove a layer from top management, reducing 10 geographical business areas into five.