Nokia announced on Monday that Justin Hotard would be its next chief executive, marking a significant leadership change as the telecom giant seeks to expand beyond 5G and invest more deeply in artificial intelligence.
Hotard, currently Executive Vice President and General Manager of Intel’s Data Center & AI Group, will officially assume the role on April 1, succeeding Pekka Lundmark.
Lundmark, who has led the company since 2020, will stay on as an advisor until the end of the year to facilitate the transition.
The leadership change comes as Nokia and its rivals in the telecom equipment industry face slowing demand for 5G infrastructure. With network sales declining, companies are looking toward AI, cloud computing, and data center technologies as new growth drivers.
“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,” Nokia Chair Sari Baldauf said in a statement.
Lundmark’s exit had been the subject of speculation in recent months, though the company previously denied reports that it was searching for a new CEO. According to Baldauf, the leadership transition was initiated when Lundmark expressed his intention to step away from executive roles after guiding Nokia through a critical phase of repositioning.
During his tenure, Lundmark implemented significant restructuring efforts aimed at reviving Nokia’s competitiveness in the telecom industry. While the company made progress, it continues to navigate a challenging market environment.
What we know
Nokia has faced headwinds amid the broader slowdown in telecom equipment sales. Last month, the company projected its 2025 operating profit to range between €1.9 billion and €2.4 billion ($2 billion to $2.5 billion), down from €2.62 billion in comparable operating profit the previous year.
- Lundmark, however, described the forecast as a “strong improvement” when excluding more than €700 million in one-time gains that had boosted 2024 results.
- With Hotard at the helm, Nokia is expected to accelerate its focus on AI-powered network solutions and expand its presence in the data center market—a sector that has become increasingly important as businesses and governments ramp up digital transformation efforts.
What you should know
Hotard-50 years old is a seasoned technology executive with a career spanning major players in the industry in the last two decades. Before joining Intel, he held senior leadership roles at Hewlett Packard Enterprise, overseeing High Performance Computing, AI & Labs, and serving as President and Managing Director for Japan and China. He has also held executive positions at NCR Corporation and Symbol Technologies, later acquired by Motorola.
Hotard holds an MBA from the MIT Sloan School of Management and a Bachelor’s in Electrical Engineering from the University of Illinois Urbana-Champaign.
His appointment signals Nokia’s ambitions to diversify its portfolio, leveraging AI and advanced computing to remain competitive.
