Ericsson’s reorganization is too conservative to stop Huawei in its tracks

From Intel to Ericsson, the giants of technology are slashing their workforces and looking to the cloud to compensate for the slowdown in their traditional businesses. Ericsson, whose carrier business was overtaken by Huawei in fiscal 2015, announced its first major reorganization since 2010 in the wake of a drop in sales and gross margin in its first quarter. However, with no new blood in its reshuffled executive team, and question marks over the critical IP activities, it looks far too modest and internally focused to worry its Chinese rival. The Swedish firm is restructuring its business units and senior management to place greater emphasis on IT, cloud, media and non-carrier markets, all sectors where it sees strong growth. In…