 "Nokia taps in former Intel AI & data centre boss Justin Hotard as CEO, Pekka Lundmark to step down")
Nokia has announced that Justin Hotard, the former head of Intel’s AI and data centre 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 major $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 centre 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 to advise Hotard until the end of the year. Chairperson Sari Baldauf praised Hotard’s extensive experience in technology leadership, highlighting his expertise in accelerating growth in AI and data centres—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 rumours at the time, it has now confirmed the leadership change as part of its broader strategy to recover from recent setbacks.
During his tenure, Lundmark managed to deliver an average annual return of 5% on Nokia’s shares. However, this performance lagged behind the industry average of 11%, leading to increased 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 the 2.62 billion euros last year. Lundmark described this outlook as a positive step 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 centre 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, is immensely experienced in technology sector. Before joining Nokia, Hotard served as the Executive Vice President and General Manager of Intel’s Data Center & AI Group. He previously held key leadership roles at Hewlett Packard Enterprise, where he oversaw high-performance computing and AI initiatives. His career also includes executive positions at NCR Corporation and Symbol Technologies, which was later acquired by Motorola.
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 phase of growth.
Impact Shorts
More ShortsAll eyes will be on Hotard to deliver the transformation the company needs to stay competitive in the rapidly evolving tech landscape.
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
