Nokia announces ex-Intel AI and data centre boss as new CEO

Finnish telecommunications giant Nokia revealed that it has chosen to appoint Justin Hotard as its new chief executive officer (CEO), to take over from Pekka Lundmark, who has been leading the company since 2020.

Lundmark will be stepping down as CEO from 31 March this year, with Hotard scheduled to start as Nokia CEO from 1 April. However, Nokia has shared that Lundmark will still remain at the company to advise Hotard until the end of 2025.

At the moment, Hotard is the executive vice president and general manager of Intel’s Data Centre and AI Group.

He was previously at Hewlett Packard Enterprise for several years, holding a variety of roles such as senior vice president, Corporate Transformation and corporate senior vice president & president of HPE Japan.

This move comes as telecom network equipment manufacturers are dealing with falling sales of 5G gear. As such, several telecom companies have been exploring ways to venture into new markets such as artificial intelligence and diversify their businesses in the process.

Sari Baldauf, chair of Nokia’s board of directors, said in a press release on the company’s website: “I am delighted to welcome Justin to Nokia. He 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. 

“In his previous positions, and throughout the selection process, he has demonstrated the strategic insight, vision, leadership and value creation mindset required for a CEO of Nokia.”

Justin Hotard also said in the press release: “I am honored by the opportunity to lead Nokia, a global leader in connectivity with a unique heritage in technology. Networks are the backbone that power society and businesses, and enable generational technology shifts like the one we are currently experiencing in AI. 

“I am excited to get started and look forward to continuing Nokia’s transformation journey to maximize its potential for growth and value creation.”

Current president and CEO of Nokia, Pekka Lundmark, also said: “Leading Nokia has been a privilege. When I returned to Nokia in 2020, I called it a homecoming, and it really has felt like one. I am proud of the work our brilliant team has done in re-establishing our technology leadership and competitiveness, and positioning the company for growth in data centers, private wireless and industrial edge, and defence. 

“This is the right time for me to move on. I have led listed companies for more than two decades and although I do not plan to stop working, I want to move on from executive roles to work in a different capacity, such as a board professional. Justin is a great choice for Nokia and I look forward to working with him on a smooth transition.”

Nokia leans heavily into network technology investments

Nokia has made a marked move away from mobile phone production in recent years, while focusing more on solidifying its position in telecommunications infrastructure, especially 5G networks. The company sold its mobile phone business to Microsoft back in 2014, which included the Lumia and Asha brands, as well as Nokia’s design team. 

It has also ramped up its network technology investments, while focusing more on software-defined networking and cloud services and trying to integrate artificial intelligence more into its services and network infrastructure. 

These moves have gone a long way in helping Nokia be seen more as a B2B technology provider, rather than a consumer electronics company. To further cement this move, Nokia has updated its branding and logo as well.