The CEO of Swedish telecommunications company Ericsson, Börje Ekholm, is set to step down in September after nine years at the helm, a period marked by significant challenges and recovery efforts. The Stockholm-based firm announced that Per Narvinger, the current head of its business area networks, will succeed Ekholm as the company intensifies its focus on emerging 6G technology.

Ekholm assumed leadership in 2017 during a turbulent time for Ericsson, which had been embroiled in a series of legal and ethical controversies. Notably, in 2019, Ericsson agreed to pay over $1 billion to resolve U.S. investigations into allegations of foreign corruption involving several countries, including China, Indonesia, Vietnam, Djibouti, and Kuwait. Subsequently, the company was fined $206.7 million for failing to properly report information related to the settlement to the U.S. Department of Justice.

In 2022, Ekholm publicly acknowledged that Ericsson may have made payments to the terrorist group ISIS to secure transportation routes in areas of Iraq under the group's control. This admission triggered a sharp decline in the company’s share price, which fell by 14 percent that day.

Despite these setbacks, Ekholm led efforts to stabilize and redirect the company’s strategy. By late 2023, Ericsson secured a major $14 billion contract to build the mobile network for U.S. carrier AT&T, outbidding rival Nokia for the project. Shares of Ericsson recently reached a five-year high of 128 Swedish kronor—more than double the low point experienced in 2023 following the payment scandal.

Reflecting on his tenure, Ekholm noted that the company faced "considerable headwinds" upon his arrival but had since reestablished itself as a global leader in communications and technology amid the advancing "physical AI era."

Narvinger, who will take over during a critical period for the telecommunications industry, emphasized the growing importance of advanced connectivity. “As AI continues to industrialize, this will increasingly require advanced connectivity solutions, an area where Ericsson is leading,” he said.

The leadership transition comes as Ericsson prepares to drive innovation in next-generation mobile networks, positioning itself for the anticipated widespread rollout of 6G technology in the early 2030s.