Nokia picks Intel's AI and data center leader Hotard as new CEO

CEO of Nokia Pekka Lundmark attends an event to ring the opening bell at the New York Stock Exchange (NYSE) in New York City, U.S., May 24, 2023. REUTERS

Finland's Nokia on Monday said Pekka Lundmark would step down as CEO, and that it has appointed Justin Hotard to take over his role.

Hotard, who will take up the position on April 1, is currently the executive vice president and general manager of Data Center & AI Group at Intel, according to the chipmaker's website.

Telecom gear makers, struggling with lower sales of 5G equipment, have been looking for ways to diversify their markets and break into growing areas such as artificial intelligence.

"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's Chair Sari Baldauf said in a statement.

Lundmark, who was appointed as Nokia's CEO in 2020, will stay on as an advisor to Hotard until the end of the year, the company said.

In September, Nokia declined media reports saying the company was looking for a new chief executive.

"The planning for this leadership transition was initiated when Pekka indicated to the Board that he would like to consider moving on from executive roles when the repositioning of the business was in a more advanced stage, and when the right successor had been identified," Baldauf said.