Nokia makes leadership changes amid declining sales

Nokia on Monday announced a leadership change in a bid to rejuvenate its business amidst declining sales.

The Finnish telecoms equipment maker revealed that Pekka Lundmark will step down as CEO, with Justin Hotard, currently Executive Vice President and General Manager of the Data Centre & AI Group at Intel, set to take over the role.

Hotard’s appointment was disclosed in a statement on Monday, confirming that he will officially assume the position of CEO on April 1, 2025.

This leadership transition comes as Nokia grapples with shrinking demand for telecom equipment and a slowdown in investments from operators, particularly in the 5G sector.

Nokia’s appointment of Hotard signals the company’s effort to steer itself through a difficult period and pursue growth opportunities in the tech space.

With a strong background in data centres and artificial intelligence, Hotard’s expertise is seen as key to navigating the challenges facing the telecom giant.

In a statement on its website, the chair of Nokia’s board of directors, Sari Baldauf, expressed her delight at the appointment.

He said, “He has a strong track record of accelerating growth in technology companies along with vast expertise in AI and data centre markets, which are critical areas for Nokia’s future growth.

“In his previous positions, and throughout the selection process, he has demonstrated the strategic insight, vision, leadership, and value creation mindset required for a CEO of Nokia,” he said.

New CEO Hotard shared his excitement, stating, “I am honoured by the opportunity to lead Nokia, a global leader in connectivity with a rich heritage in technology.

“Networks are the backbone that power society and businesses and enable generational technology shifts, such as the one we are witnessing in AI. I am eager to begin this journey and continue Nokia’s transformation to unlock its full growth potential and value creation.”

After leading Nokia since 2020, Pekka Lundmark has decided to step down from his executive roles to pursue the next phase of his career.

Reflecting on his tenure, Lundmark remarked, “Leading Nokia has been a privilege. When I returned to the company in 2020, I called it a homecoming, and it truly has felt that way.