Nokia Appoints Justin Hotard as CEO Amid Strategic AI Shifts

Nokia announced on Monday that “Justin Hotard”, former head of Intel’s AI and data center division, will take over as CEO on April 1, succeeding Pekka Lundmark.

Key Points

• Nokia’s board chair, Sari Baldauf, praised Hotard’s expertise in AI and data centers, calling them critical to the company’s future growth.
• Reports from September 2023 indicated Nokia was searching for a new CEO amid concerns over slow revenue growth and a stagnant share price.
• Lundmark, who joined in 2020, helped strengthen Nokia’s 5G position, benefiting from U.S. restrictions on Chinese competitor Huawei.
• In October 2023, Nokia announced 14,000 job cuts as part of a cost-cutting plan to save $1.2 billion over three years.
• Lundmark had informed the board of his intention to step down once Nokia’s business repositioning was further along.
• Baldauf credited Lundmark with re-establishing Nokia’s leadership in 5G and strengthening its cloud-native core network position.
• Nokia has spent the past two decades trying to regain its status as one of Europe’s top technology giants.
• Hotard’s appointment, aimed at leveraging AI talent from the leading U.S. market, will further reinforce Nokia’s recent shift towards the technology signifies a renewed commitment U.S. technological capability.

News Gist

Nokia announced that Justin Hotard, former Intel executive, will become CEO on April 1, replacing Pekka Lundmark.

Lundmark, who joined in 2020, helped strengthen Nokia’s 5G position amid Huawei’s setbacks. In October 2023, Nokia cut 14,000 jobs to save $1.2 billion.

The company had been searching for a new CEO due to slow revenue growth. Hotard’s AI expertise aligns with Nokia’s strategic shift toward U.S. technological advancements.