Copenhagen, Feb 10 – Finnish telecom giant Nokia (NOKIA.HE) announced on Monday that its current CEO, Pekka Lundmark, will step down, with Justin Hotard set to take over as the new chief executive officer. Hotard, who currently serves as the Executive Vice President and General Manager of the Data Center & AI Group at Intel (INTC.O), will officially assume the position on April 1.
A Strategic Move Amid Market Challenges
The telecom industry has been facing significant challenges, particularly with a decline in 5G equipment sales. Nokia, like its competitors, is actively seeking new growth opportunities, particularly in artificial intelligence and data center markets.
Sari Baldauf, Nokia’s Chair, emphasized Hotard’s expertise as a key factor in his appointment.
“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,” Baldauf stated.
This leadership change signals Nokia’s strategic shift towards AI-driven technologies, cloud computing, and enterprise solutions—areas that have seen massive growth in recent years.
Lundmark’s Tenure and Transition
Pekka Lundmark took over as Nokia’s CEO in 2020, navigating the company through a highly competitive telecom landscape. Under his leadership, Nokia focused on strengthening its 5G network business while making early moves into AI and cloud computing.
Lundmark will remain with the company as an advisor to Hotard until the end of 2025, ensuring a smooth transition. Nokia had previously denied reports in September that it was looking for a new CEO, but this announcement confirms the company’s leadership restructuring.
Who is Justin Hotard?
Justin Hotard is a seasoned technology executive with extensive experience in AI and data center infrastructure. At Intel, he led the company’s Data Center & AI Group, playing a critical role in shaping Intel’s enterprise computing strategy.
His expertise aligns with Nokia’s future ambitions, as the company looks to expand beyond traditional telecom equipment into more AI-driven solutions. Given the growing role of AI in network optimization and telecommunications, Hotard’s leadership could help Nokia gain a competitive edge in the evolving market.
What This Means for Nokia’s Future
With AI and cloud computing becoming integral to next-generation connectivity, Nokia’s decision to bring in an AI-focused leader suggests a shift in its long-term vision. The move comes at a crucial time when telecom companies must diversify their offerings to remain relevant.
As Justin Hotard prepares to take charge in April, all eyes will be on how he steers Nokia towards innovation and new business opportunities in the AI-driven era.
