Nokia picks Intel's Justin Hotard as its new CEO
What's the story
Nokia has announced the appointment of senior Intel executive Justin Hotard as its new Chief Executive Officer. He will be succeeding Pekka Lundmark, who is stepping down amid efforts to recover from lost contracts and a drop in profits. Lundmark's official departure is set for March 31, with Hotard taking over the reins of the company on April 1.
Strategic appointment
Hotard's expertise in AI and data center markets
Hotard comes with a proven track record of driving growth in tech companies and deep expertise in AI and data center markets, which are critical for Nokia's future growth plans. "The planning for this leadership transition was initiated when Pekka indicated to the Board that he would like to consider moving on from executive roles when the repositioning of the business was in a more advanced stage," said Nokia Chairperson Sari Baldauf.
Business realignment
Nokia's shift in focus amid market challenges
In recent years, Nokia has struggled with reduced operator investments in next-generation equipment. This includes losing a huge $14 billion contract with AT&T to Swedish rival Ericsson AB in 2023. Consequently, the company is now pivoting toward expanding its footprint in the data center market.
Legacy review
Lundmark's tenure and Nokia's financial performance
During Lundmark's more than four-year tenure, Nokia delivered an average annualized return of 5% on its shares. This is against an 11% return among industry peers, as per Bloomberg data. Last month, Nokia projected its 2025 operating profit to be between €1.9 billion and €2.4 billion, down from €2.62 billion in comparable operating profit last year.
Professional background
A look at Hotard's distinguished career in tech
Born in 1974, Hotard is a US citizen with an impressive career in the technology sector. He is currently serving as the Executive Vice President and General Manager of the Data Center and AI Group at Intel. His professional journey also comprises various leadership roles at Hewlett Packard Enterprise, NCR Corporation, and Symbol Technologies (later acquired by Motorola).