Nokia faucets in former Intel AI & knowledge centre boss Justin Hotard as CEO, Pekka Lundmark to step down – Firstpost

Nokia has introduced that Justin Hotard, the previous head of Intel’s AI and knowledge centre division, will take over as CEO on April 1.  

The transfer comes as Pekka Lundmark, who has led the corporate since 2020, steps down following Nokia’s wrestle with declining income and misplaced orders, together with a significant $14 billion contract with AT&T, which went to Swedish competitor Ericsson.  

Hotard’s appointment is seen as a strategic shift in the direction of strengthening Nokia’s give attention to AI and knowledge centre markets, each essential for its future development.

Management transition at Nokia

Lundmark, 61, will formally exit the CEO position on March 31 however will proceed to advise Hotard till the top of the 12 months. Chairperson Sari Baldauf praised Hotard’s in depth expertise in know-how management, highlighting his experience in accelerating development in AI and knowledge centres—areas Nokia goals to increase into extra aggressively.

Hypothesis about Lundmark’s departure had circulated since final 12 months, with stories indicating that Nokia’s board was quietly evaluating potential successors. Though the corporate denied these rumours on the time, it has now confirmed the management change as a part of its broader technique to get well from current setbacks.

Throughout his tenure, Lundmark managed to ship a median annual return of 5% on Nokia’s shares. Nevertheless, this efficiency lagged behind the business common of 11%, resulting in elevated stress for a strategic overhaul.

Challenges and strategic focus

Nokia has confronted robust competitors within the 5G tools market, with diminished operator spending and key contracts slipping away. The corporate’s current financials projected a drop in working revenue for 2025, which might fall between an anticipated vary of 1.9 billion euros to 2.4 billion euros, down from the two.62 billion euros final 12 months. Lundmark described this outlook as a optimistic step when excluding one-time objects that had boosted 2024’s outcomes.

Below Hotard’s management, Nokia goals to pivot in the direction of AI-driven innovation and knowledge centre options. The corporate hopes this shift will allow it to diversify its income streams and scale back its dependency on conventional telecom infrastructure tasks.

Who Is Justin Hotard?

Justin Hotard, a US nationwide born in 1974, is immensely skilled in know-how sector. Earlier than becoming a member of Nokia, Hotard served because the Govt Vice President and Basic Supervisor of Intel’s Information Middle & AI Group. He beforehand held key management roles at Hewlett Packard Enterprise, the place he oversaw high-performance computing and AI initiatives. His profession additionally consists of government positions at NCR Company and Image Applied sciences, which was later acquired by Motorola.

Hotard has an MBA from the MIT Sloan College of Administration and a Bachelor’s diploma in Electrical Engineering from the College of Illinois Urbana-Champaign. His robust background in data-driven applied sciences and worldwide management positions him properly to information Nokia’s subsequent section of development.

All eyes will probably be on Hotard to ship the transformation the corporate wants to remain aggressive within the quickly evolving tech panorama.