Ericsson to Reorganize Global Structure in 2027

The telecommunications giant will consolidate its Asian operations and shift its wireless business units starting January 1, 2027.

Updated on Oct. 15, 2026 in Business Strategy

Ericsson to Reorganize Global Structure in 2027

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Ericsson will reorganize its global operational structure on January 1, 2027, to streamline research and reduce costs. The plan includes merging regional divisions into a single Market Area Asia-Pacific and integrating specific hardware solutions into its main network unit.

Why it matters

The restructuring aims to cut operational expenses while better aligning infrastructure deployment with emerging AI agents and differentiated connectivity needs. By shifting Business Area Enterprise Wireless Solutions capabilities into broader divisions, Ericsson seeks to refine its R&D output.

Ericsson is consolidating its North East Asia, South East Asia, India, and Oceania divisions into one Market Area Asia-Pacific. Wireless WAN solutions will transition into a standalone unit, while indoor hardware and private 5G move to the Business Area Networks unit.

The players

Patrick Johansson

He is the incoming leader of the consolidated Market Area Asia-Pacific unit.

Chafic Nassif

He is an outgoing executive set to step down from his current role on December 31, 2026.

Andres Vicente

He is an outgoing executive who will depart his current role at the end of 2026.

Åsa Tamsons

She currently serves as the Head of Business Area Enterprise Wireless Solutions and will step down on December 31, 2026.

Yossi Cohen

He is the executive designated to oversee the new standalone Wireless WAN solutions unit.

The details

The company is dismantling its Business Area Enterprise Wireless Solutions unit as part of a pivot toward integrating these capabilities into its mainstream network and regional brackets. Additionally, the firm is initiating a recruitment drive to find a new leader for the Market Area Europe, Middle East and Africa division.

Timeline

  1. December 31, 2026: Three executives will step down from their current positions.

  2. January 1, 2027: The new operational structure takes effect.

Market Landscape

This reorganization follows the pattern of the 2017 Ericsson operational turnaround strategy by narrowing focus on core networking and infrastructure. The move positions the company to compete more aggressively in the connectivity market against rival telecommunications equipment providers.

For customers, the transition aims to streamline the deployment of 5G and connectivity hardware by integrating private network solutions into core service offerings. Clients should monitor their account management contacts as the company aligns its regional divisions and leadership structure by early 2027.

The takeaway

The upcoming 2027 changes signal an organizational pivot toward prioritizing core network capabilities and AI-driven infrastructure. Stakeholders should expect more integrated service offerings as the company consolidates its disparate wireless solutions into unified business units.

Further reading

Explore broader trends in corporate restructuring at the Business Strategy section.

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Do large-scale corporate restructurings in the telecommunications industry generally benefit the average consumer?