Image credit: The Byteline

Nokia has announced a leadership change, as Pekka Lundmark will step down as CEO to make way for Justin Hotard, who currently serves as the executive vice president and general manager of Intel's Data Center & AI Group.

Hotard is set to take the helm on April 1, 2025.

This transition comes at a time when Nokia, like other telecom equipment manufacturers, faces challenges with declining sales of 5G equipment.

The company is now pivoting towards diversification, aiming to tap into burgeoning markets like artificial intelligence and data centers, areas where Hotard has notable expertise.

Sari Baldauf, Nokia's Chair, praised Hotard's appointment, highlighting his "strong track record of accelerating growth in technology companies" and his deep knowledge in AI and data center markets, which are pivotal for Nokia's future expansion.

Lundmark, who assumed the CEO role in 2020, will continue to contribute as an advisor to Hotard until the end of 2025, ensuring a smooth transition.

His decision to step down was planned, with the board beginning the search for a successor once Lundmark expressed his interest in moving away from executive duties, particularly after significant business repositioning had been achieved.

This leadership change was not without its rumors; in September, Nokia had to address media speculation about seeking a new CEO, which they denied at the time.

However, this recent announcement confirms the strategic shift in leadership as Nokia looks to navigate through new technological landscapes and market dynamics.

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