Nokia has announced a leadership change, appointing Justin Hotard, a senior executive from Intel, as its next President and Chief Executive Officer.
Hotard, who currently leads artificial intelligence and data centre operations at the US chipmaking giant, will officially assume the role on April 1, 2025, succeeding Pekka Lundmark.
Lundmark, who has served as CEO since 2020, is set to step down on March 31. Explaining his decision, he remarked, “I want to move on from executive roles to work in a different capacity, such as a board professional.”
At 61, he has accumulated more than two decades of leadership experience in publicly listed companies.
Strategic Shift Towards AI and Innovation
Hotard’s appointment reflects Nokia’s increasing focus on artificial intelligence and digital infrastructure.
Born in 1974, he brings over 25 years of leadership experience from major technology firms, including Hewlett Packard.
Sharing his enthusiasm for the new role, Hotard stated, “I am excited to get started and look forward to continuing Nokia’s transformation journey to maximize its potential for growth and value creation.”
He also underscored the pivotal role of networks in driving technological advancements, saying, “Networks are the backbone that power society and businesses, and enable generational technology shifts like the one we are currently experiencing in AI.”
US Market and Future Expansion
Nokia’s chairwoman, Sari Baldauf, highlighted Hotard’s expertise in AI and data centres as key assets for the company’s future.
She also emphasised his understanding of the US market, noting, “The US is an important market for us.”
Navigating a Competitive Landscape
Hotard takes the helm at a crucial time for Nokia, which has worked to regain momentum after facing market challenges.
In 2023, the company announced plans to cut up to 14,000 jobs due to declining demand for 5G equipment in North America. However, a recent financial turnaround saw Nokia report an 89% increase in net profit for 2024, bolstered by strong sales in India and North America.
According to market analyst Atte Riikola from Inderes, Nokia is shifting its focus towards network infrastructure, particularly AI and data centres.
“We believe this is a valid direction, as Nokia’s longer-term growth prospects on the Mobile side clearly look more modest than Network Infrastructure,” he wrote on Inderes’ website.
Baldauf acknowledged Lundmark’s leadership, stating, “Under his tenure, Nokia has re-established its technology leadership in 5G radio networks and built a strong position in cloud-native core networks.”
She also expressed appreciation for his role in guiding the company through challenging periods.
Following the announcement, Nokia’s share price rose by 2% to 4.76 euros ($4.92) in midday trading.
Riikola noted that while Lundmark took over when Nokia’s stock was around four euros, the mobile networks sector’s volatility has made sustained profitability a challenge.
