Nokia points ex-Intel VC Justin Hotard as CEO amid 5G sales struggles

Nokia, the Finnish tech giant which famed for its phones back in the 2000s before its 2010s decline, has now appointed Justin Hotard as its new CEO.

Hotard previously helmed Intel’s executive vice president of Data Center & AI Group. Now, he’s succeeding Pekka Lundmark, Nokia’s current CEO since 2020, who will step down on March 31 but remain an advisor until the end of the year.

“Networks are the backbone that power society and businesses and enable generational technology shifts like the one we are currently experiencing in AI. I am excited to get started and look forward to continuing Nokia’s transformation journey to maximize its potential for growth and value creation,” Justin Hotard said.

The leadership shake-up comes amid Nokia’s struggles with declining 5G sales and losing key contracts, including a $14 billion deal with AT&T to Ericsson in 2023.

Under Lundmark’s tenure since 2020, Nokia’s shares delivered an average annualized return of 5%, lagging behind its competitors’ 11%, as compiled by Bloomberg.

Nokia, now focusing on AI and data centers, sees Hotard’s experience as crucial for future growth. The board had been considering replacements since at least September, though Nokia initially denied succession reports.

Lundmark indicated his intent to step down once Nokia’s repositioning was more advanced and a suitable successor was found. Nokia’s 2025 profit forecast is lower than the previous year, though Lundmark framed it as an improvement, excluding one-time 2024 gains.