Nokia’s Transition to New Leadership Amidst Restructuring Efforts
Nokia announced on Thursday that long-time chair Sari Baldauf plans to step down, with the company proposing Timo Ihamuotila as her successor. This leadership shift comes as the telecom equipment maker leverages its push into artificial intelligence (AI) to meet quarterly earnings expectations.
Baldauf’s Long-Standing Role at Nokia
Baldauf, one of Nokia’s longest-serving executives, has chaired the company’s board since 2020, after rejoining in 2018. Her earlier tenure, which spanned from 1994 to 2005, coincided with Nokia’s dominance as a global leader in the mobile phone market.
Ihamuotila’s Appointment and Background
Timo Ihamuotila, currently serving as vice chair, is set to take over as chair. He has a strong background with Nokia, having served as the company’s chief financial officer between 2009 and 2016. Ihamuotila is also set to leave his role at Swiss group ABB by the end of 2026.
Nokia’s Financial Performance and Future Outlook
In its fourth-quarter earnings report, Nokia recorded a 3% year-on-year drop in comparable operating profit, amounting to 1.05 billion euros ($1.26 billion), which was in line with analysts’ expectations. The company’s net sales reached 6.12 billion euros, meeting forecasts.
Nokia continues one of its largest restructuring efforts since selling its iconic mobile phone business over a decade ago. The company is betting on AI and increased demand for data centres to offset challenges in 5G spending and losses in contracts.
Despite a profit warning tied to U.S. import tariffs and a weaker dollar, the company remains focused on speeding up its transition under the leadership of CEO Justin Hotard, appointed last year.
Looking ahead, Nokia expects its comparable operating profit in 2026 to range between 2 billion and 2.5 billion euros. The company also plans to keep its dividend payout unchanged, at 14 euro cents per share.
