(Bloomberg) – Nokia Oyj will replace the chief executive, Pekka Lundmark, with the recently named artificial intelligence chief of Intel Corp., Justin Hotard, while the network of network equipment works to leave a prolonged collapse in the Orders of telephone operators.
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Lundmark, 61, will resign on March 31 after more than four years in the role, and Hotard will resume the next day, the company based in Espoo, in a statement. The outgoing CEO will continue until the end of the year as a Hotard advisor, 50.
Intel recruited Hotard a little over a year ago from Hewlett Packard Enterprise Co. to direct its data center and AI group, bringing an outsider to a division that was crucial for the rectification efforts of the flea manufacturer. At Intel, he supervised some of the most important products in the company, including XEON server processors which were formerly dominant in data centers but who have lost sharing to compete with offers and internal efforts of customers . He is an American national and will be based at the Nokia headquarters in Espoo.
Hotard’s experience at Intel gives him expertise in a company that Nokia hoped will stimulate growth. Nokia has known in recent years with a low investment of operators in the 5G mobile equipment of the next generation and increasing competition, in particular by losing a Key AT&T contract inc. worth $ 14 billion in the Swedish rival Ericsson Ab . However, Lundmark said last month that the company was starting to see signs of growth in North America, a Belwether for telecommunications spending worldwide.
“The transition from Nokia CEO is a surprise since Pekka Lundmark managed to” stabilize the ship “,” said Jpmorgan Chase & Co. analysts in a note on Monday. “Since a new CEO has already been appointed, it seems that this transition has been in preparation for some time. With the data center and the AI-foundation of the new CEO, it is clear in the areas on which Nokia wants to concentrate. »»
Nokia shares increased by 2.4% to € 4.77 at 2:54 p.m. in Helsinki on Monday. They have gained 43% in the last 12 months.
Hotard said he would stay the course at first in an interview with Bloomberg. Like his predecessor, he said that he did not intend to reduce prices in the mobile networks sector in order to obtain market share.
“In the end, in a company like this where we have profound relations with customers and you have an important level of investment in R&D, it is really a question of being disciplined on the price”, a- He said, adding that he would focus on growing solid relationships with customers and investing in other areas.