Nokia named Intel executive Justin Hotard (pictured, left) as president and CEO, replacing Pekka Lundmark (pictured, right), who took the helm in 2020 and will continue as an adviser to the new CEO until the end of the year.

Hotard is currently the head of AI and data centres at Intel and will start the new role on 1 April. 

In a statement, Nokia explained Lundmark decided to step down and move on to the next phase of his career.

Chair of Nokia’s board Sari Baldauf noted Hotard has a strong track record of accelerating growth in technology companies and vast expertise in AI and data centre markets, which are critical areas for its growth.

She added under Lundmark’s tenure, Nokia re-established its leadership in 5G radio networks, built a strong position in cloud-native core networks and network infrastructure delivered growth and significant profit improvement.

Ian Fogg, industry analyst at CCS Insight, noted on LinkedIn the change in leadership could indicate a change in strategic direction: “Expect to see a lot of AI discussion around the appointment. Separating talk from AI substance will be important.”

In September 2024, Nokia denied media reports it had started a process to find a new CEO.

Lundmark joined the company during a challenge period, when profit and its share price were falling.

On an earnings call in late January, Lundmark said he was bullish about an improvement in market trends going into 2025.

In Q4 2024, net sales at a constant currency grew 9 per cent year-on-year to €6 billion, with a net profit of €813 million compared with a €33 million loss in Q4 2023.