Nokia has announced a significant leadership transition, appointing Justin Hotard as its new President and Chief Executive Officer, effective April 1, 2025. Hotard succeeds Pekka Lundmark, who will step down from the role but remain as an advisor to ensure a smooth transition until the end of the year. This change in leadership signals a strategic shift for the Finnish telecom giant, with a sharpened focus on artificial intelligence (AI) and data center technologies.
Hotard brings over 25 years of experience in the technology sector to Nokia, most recently as the Executive Vice President and General Manager of the Data Center & AI Group at Intel. His background includes leadership positions at Hewlett Packard Enterprise and NCR Corporation. Nokia's board expressed confidence in Hotard's ability to accelerate growth and innovation in these critical areas. According to Sari Baldauf, Chair of Nokia's Board of Directors, Hotard has a "strong track record of accelerating growth in technology companies along with vast expertise in AI and data center markets, which are critical areas for Nokia's future growth".
The appointment of Hotard reflects Nokia's strategic focus on the rapidly expanding AI and data center markets, especially as demand for 5G equipment has slowed. Market analysts, such as those at JPMorgan, view this leadership change as aligning with Nokia's efforts to diversify its portfolio amidst ongoing challenges in the telecom equipment sector. Nokia aims to position itself as a leader in both telecommunications and AI and data center technologies, securing a strong foothold in the evolving global market.
Lundmark's tenure as CEO, which began in 2020, saw Nokia transition into new areas of growth. However, with the increasing dominance of AI-driven demands, the company seeks new leadership to accelerate innovation in these key sectors. Lundmark stated that after leading listed companies for over two decades, it was the right time for him to transition from executive roles to pursue opportunities as a board professional. He expressed confidence in Hotard as a "great choice for Nokia" and committed to working with him for a seamless transition.
Nokia's strategic priorities for 2025 emphasize innovation and growth, particularly in 5G, AI, and cloud connectivity. The company aims to empower Communication Service Providers (CSPs) to differentiate themselves through optimized networks, cloudification, autonomous systems, and new revenue streams. Nokia is also focused on expanding its leadership in areas like private wireless, industrial edge, and data centers. To enhance its competitive edge, Nokia is committed to investing in research and development (R&D) to drive innovation in areas such as network slicing, private wireless, and industrial automation.
Nokia is actively exploring expansion into new markets to diversify its revenue streams, including cloud and network services and enterprise solutions. The company is targeting regions with growing demand for advanced network solutions, such as North America, Europe, and India, and is making inroads into the enterprise sector, offering private wireless networks and industrial automation solutions to industries like manufacturing, logistics, and public safety. In June 2025, Nokia announced changes to its Group Leadership Team, with David Heard appointed as President of Network Infrastructure, succeeding Federico Guillén. Victoria Hanrahan also joined the Group Leadership Team as Chief of Staff to the President and CEO. These changes are designed to provide more autonomy and independence to the business groups and improve agility and speed in supporting customers globally.
Nokia's strategy involves streamlining its operational model, simplifying its organization, and redeploying resources to focus on key growth areas such as 5G, cloud infrastructure, and the enterprise market. The company is also committed to long-term research through Nokia Bell Labs, exploring areas like 6G and new ventures to commercialize its technologies. By increasing the digitalization of its operations, Nokia aims to improve efficiency, productivity, and agility in internal operations, customer experience, and R&D.
With Justin Hotard at the helm, Nokia is charting a new course towards becoming a B2B technology innovation leader, leveraging its expertise in AI and data centers to drive sustainable, profitable growth and meet the evolving demands of the digital world.
