Ericsson names new CEO amid declining networks industry

STOCKHOLM (AP) — Swedish mobile networks company Ericsson said Wednesday it has named longtime board member Borje Ekholm as its new CEO, in a bid to turn around the company amid a decline in the industry.

The company, which has been struggling against fierce competition, recently announced 3,000 layoffs — or nearly 20 percent of its local workforce— and said it will downsize operations as part of its global plan to cut costs by $1 billion in 2017.

Chairman Leif Johansson described Ekholm as having "a strong track record of driving shareholder value," and said that he was the right person to face the challenges of new technologies, including 5G mobility.