Davos 2026: Tariffs are the new normal, but Ericsson has flexibility, says CEO Börje Ekholm

Ericsson Global CEO Börje Ekholm at the World Economic Forum in Davos, Switzerland on January 20

Trade restrictions and tariffs have been shaping how telecom equipment companies operate globally, but Ericsson’s manufacturing diversity has helped keep the impact manageable, CEO Börje Ekholm said at the World Economic Forum in Davos on November 20.

Speaking to Moneycontrol, Ekholm said, "When I started as CEO in 2017, geopolitics was not part of the job description. That has clearly changed."

However, he said Ericsson's early investments in securing diverse supply chain helped cushion the impact.

The company has manufacturing and operations across India, the US, Europe, South America and other parts of Asia, creating what Ekholm described as a “very flexible supply chain”.

"As a result, the impacts of tariffs so far have been relatively modest," he said.

"Somebody else decides how it's going to look, and we need to be sure that we can adjust accordingly,” he said.

Apart from this, Ekholm said, recent job cuts at Ericsson were part of a long-running global efficiency effort rather than a short-term response to market weakness.

He also said that India has emerged as one of Ericsson's most important global markets with over 25,000 employees.

India now ranks among the highest globally in data consumption per subscriber, a trend Ekholm said continues to accelerate.

He also contrasted India's market structure with Europe's. While India has three major telecom operators, Europe has hundreds across fragmented markets.