- Nokia denies looking for a new CEO, expressing full support for Pekka Lundmark.
- The company faces a 32% drop in Q2 profits due to weak 5G demand.
- Nokia anticipates a sales rebound by the end of 2024, led by North American orders.
Nokia has firmly denied rumors of plans to replace its President and CEO, Pekka Lundmark. In response to a Financial Times report, the company clarified that it regularly reviews long-term leadership succession strategies but is not currently seeking a new chief executive.
The board expressed full confidence in Lundmark’s leadership, emphasizing that no such process is underway.
Nokia Refutes CEO Replacement Rumors Amid 5G Market Challenges
Lundmark, who took over as CEO in 2020, has been navigating challenging market conditions. Nokia reported a significant 32% drop in second-quarter operating profits due to reduced demand for 5G infrastructure. However, the company remains optimistic, expecting a recovery in sales towards the end of 2024, largely driven by orders from North America.
In August, Nokia reported a notable decline in its second-quarter earnings, citing sluggish demand for 5G telecom equipment as the primary factor behind the 32% profit drop. The ongoing global economic uncertainty and delayed infrastructure investments have weighed heavily on the company’s performance.
Despite the downturn, Nokia is hopeful about the future. The company has identified North America as a key region that will drive a recovery in sales by the end of 2024. It expects a resurgence in orders as telecom operators ramp up 5G network expansions, improving both revenues and market share.
Lundmark’s leadership has been characterized by efforts to pivot Nokia’s strategy toward digital infrastructure and technology innovation. As the company prepares for the next phase of its 5G and cloud networking rollouts, it remains confident in its leadership team’s ability to navigate current market headwinds.
Nokia’s firm stance on supporting Pekka Lundmark reflects confidence in his leadership amid challenging market conditions. With an eye on future growth, the company expects to bounce back with stronger sales by late 2024, driven by opportunities in North America.
“The Board fully supports President and CEO Pekka Lundmark and is not undergoing a process to replace him.”
