Dow Jones Newswires reports that 57-year-old Svanberg will retain his shares in the company and remain on the board of the company, which is the largest telecom equipment-maker in the world. Vestberg, 44, who has been at the company for 18 years, has been CFO since 2007. The company will search for a new CFO.

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Analysts say Svanberg’s departure is not a surprise and that Vestberg has been groomed for the role for some time. Going forward, Ericsson (NSDQ: ERIC) is facing a ton of challenges, ranging from a slowing equipment market to increased competition from low-cost providers coming from China. It also needs to turnaround Sony Ericsson, the joint handset venture it shares with Sony (NYSE: SNE). Ericsson Chairman Michael Treschow said at a press conference that the company will continue heading in the same direction: “Organic growth will be the basis for our business going forward, with bolt-on acquisitions where needed. We’re also still aiming for a turnaround in our handset joint venture Sony Ericsson.”