Nokia has announced that Justin Hotard, the former head of Intel’s AI and data center division, will take over as CEO on April 1.
The move comes as Pekka Lundmark, who has led the company since 2020, steps down following Nokia’s struggle with declining profits and lost orders, including a significant $14 billion contract with AT&T, which went to Swedish competitor Ericsson.
Hotard’s appointment is seen as a strategic shift towards strengthening Nokia’s focus on AI and data center markets, both crucial for its future growth.
Leadership transition at Nokia
Lundmark, 61, will officially exit the CEO role on March 31 but will continue advising Hotard until the year’s end. Chairperson Sari Baldauf praised Hotard’s extensive experience in technology leadership, highlighting his expertise in accelerating growth in AI and data centers—areas Nokia aims to expand into more aggressively.
Speculation about Lundmark’s departure had circulated since last year, with reports indicating that Nokia’s board was quietly evaluating potential successors. Although the company denied these rumors then, it has confirmed the leadership change as part of its broader strategy to recover from recent setbacks.
During his tenure, Lundmark delivered an average annual return of 5% on Nokia’s shares. However, this performance lagged behind the industry average of 11%, increasing pressure for a strategic overhaul.
Challenges and strategic focus
Nokia has faced tough competition in the 5G equipment market, with reduced operator spending and key contracts slipping away. The company’s recent financials projected a drop in operating profit for 2025, which would fall between an expected range of 1.9 billion euros to 2.4 billion euros, down from 2.62 billion euros last year. Lundmark described this outlook as positive when excluding one-time items that had boosted 2024’s results.
Under Hotard’s leadership, Nokia aims to pivot towards AI-driven innovation and data center solutions. The company hopes this shift will enable it to diversify its revenue streams and reduce its dependency on traditional telecom infrastructure projects.
Who Is Justin Hotard?
Justin Hotard, a US national born in 1974, has immense experience in the technology sector. Before joining Nokia, Hotard served as the Executive Vice President and General Manager of Intel’s Data Center and AI Group. He previously held key leadership roles at Hewlett Packard Enterprise, overseeing high-performance computing and AI initiatives. His career includes executive positions at NCR Corporation and Symbol Technologies, which Motorola later acquired.
Hotard has an MBA from the MIT Sloan School of Management and a Bachelor’s degree in Electrical Engineering from the University of Illinois Urbana-Champaign. His strong background in data-driven technologies and international leadership positions him well to guide Nokia’s next growth phase.
All eyes will be on Hotard to deliver the transformation the company needs to stay competitive in the rapidly evolving tech landscape.
