Ericsson will refocus its business for managed services, explore options for its loss-making media arm and take several writedowns.
The move is the first from its new CEO which is supposed to lead the Swedish telecoms equipment maker out of its worst crisis in a decade
Board member Borje Ekholm took over as CEO in January and the markets had been awaiting for his cunning plan to get out of the mess the company is in.
The firm is grappling with shrinking markets and fierce competition from China’s Huawei, Finland’s Nokia and the rise of the Ice Giants trying to cross the Bridge of Bifrost (we made the last one up).
The Swedish company said it would take $797 million-$1.02 billion in the first quarter related to recent negative developments in certain large customer projects. This has worried some analysts who fear that taking that much cash out of the bank might indicate the company is a bit borked.
The company will also write down assets in the first quarter, with an estimated impact on operating income of $342-$456 million, it said in a statement.
Ekholm said he expected his bottom line to be well and truly massaged and for significant improvements to be seen in 2018.
“Beyond that I am convinced that Ericsson, on a sustainable basis, can at least double the 2016 Group operating margin, excluding restructuring charges,” he said.
New Yahoo CEO and thinking man’s wagon wheel, Marissa Mayer, has been revealing her cunning plan to save the company from “death by mediocrity”.
According to Reuters, Mayer mainly sketched broad visions rather than say much that was specific and those present noticed that the meeting with staff was “tightly controlled”.
Lately though she has been doing the right sorts of things to boost morale. Giving her staff smartphones, free food, bread and the odd circus has had a dramatic and positive impact on the “vibe” at the company.
Mayer wants to improve Yahoo’s web services and adapt the company’s products to mobile devices.
Mayer’s delivery apparently won spontaneous applause from the workforce. Did we mention that the meeting was tightly controlled?
Apparently the sorts of things she said were the lines “that had been said before, but people believe it now,” one member of staff said.
Yahoo has clamped down firmly on leaks to the press. Attendees at Tuesday’s assembly were instructed to shut their laptops and their traps.
Mayer is outlining plans to bring back advertisers and expand the company’s user base.
She also announced that it appointed as its new chief financial officer Ken Goldman, formerly CFO at cybersecurity software firm Fortinet. Goldman replaces Tim Morse, who was an interim Yahoo CEO for a year.
Mayer has seen her main job as boosting morale at the nearly two-decade-old internet company. She has also eliminated corporate bureaucracy and is introducing perks such as free cafeteria food and smartphones for employees.
Many analysts and investors believe Mayer will renew Yahoo’s focus on web technology and products rather than beefing up online content.