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Nokia Appoints New CEO Amid Strategic Shift to AI and Data Centers

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Nokia Ceo Pekka Lundmark And Justin Hotard

COPENHAGEN, Denmark — Nokia announced Monday that Pekka Lundmark will step down as CEO, effective April 1, to be succeeded by Justin Hotard, a former Intel executive with deep expertise in artificial intelligence and data centers.

Hotard, currently the executive vice president and general manager of Intel’s Data Center & AI Group, will take over as Nokia’s CEO on April 1. Lundmark, who has led the company since 2020, will remain as an advisor until the end of the year to ensure a smooth transition.

“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,” said Sari Baldauf, Nokia’s Chair.

The leadership change comes as telecom equipment makers face declining 5G sales and seek to expand into high-growth areas like AI. Nokia has been repositioning its business to focus on emerging technologies.

Lundmark, appointed CEO in 2020, will stay on as an advisor to Hotard until the end of the year, the company said.

In September, media reports suggested Nokia was seeking a new chief executive. Baldauf stated that the transition planning began when Lundmark indicated his desire to move on from executive roles once the business restructuring was further advanced and a suitable successor was identified.

Reporting by Stine Jacobsen, editing by Louise Breusch Rasmussen and Varun H K