Cevian's campaign helped Ericsson cut costs, refresh the board and return to profit

In January 2022 Cevian, a top-three shareholder, publicly attacked Ericsson despite strong earnings: it demanded an end to Digital Services losses, a divestiture or spin-off of Managed Services, a credible Enterprise plan, and criticized the Vonage acquisition as far pricier than buying back shares; it also called the margin target 'ridiculously low.'

Governance followed: chairman Ronnie Leten left, Jan Carlson became chairman, Cevian-backed changes reached the board, and Christer Gardell returned to the nomination committee in 2023; in February 2023 Ericsson announced 8,500 job cuts and a SEK 9 billion ($859M) cost-reduction program.

The discipline showed in 2024 results: full-year net income turned positive at SEK 0.4 billion from a SEK -26.1 billion loss (hit by Vonage impairments), adjusted gross margin climbed to 44.9% from 39.6%, and free cash flow before M&A reached SEK 40 billion from -1.1 billion.

FY2024 net income turned positive at SEK 0.4B (from -26.1B), adjusted gross margin rose to 44.9% (from 39.6%), and free cash flow before M&A hit SEK 40B (from -1.1B).

Cevian named the failing units and the fix, item by item.

Board refresh made cost discipline a governance mandate.

The 9B-krona program gave the profit recovery a mechanism.

An activist's written critique can reshape governance—new chairman, board seats, cost program—even when the company's crisis was not of the activist's making.

Ericsson kept executing the efficiency program into 2025, progressed toward its long-term margin goal, and Cevian remained a constructive top holder—a turnaround built as much on board pressure as on the 5G cycle.