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HELSINKI - Nokia announced today a strategic restructuring that will reorganize the company into two main business segments starting January 1, 2026, as it positions itself to lead in the AI-driven network transformation era.
The Finnish telecommunications equipment maker will simplify its operating model into Network Infrastructure and Mobile Infrastructure segments, aiming to strengthen product development, customer focus, and shareholder value creation. The company has set a target to increase its annual comparable operating profit to €2.7-3.2 billion by 2028, up from €2.0 billion in the last 12 months.
"Nokia changed the world once by connecting people – now we will do it again by connecting intelligent solutions," said Nokia CEO Justin Hotard in the press release.
The Network Infrastructure segment will focus on capitalizing on growing demand from AI and data center construction, while the Mobile Infrastructure segment will combine core and radio networks with technology standards to pursue leadership as the industry transitions to 6G and AI-native network solutions.
Nokia will also establish a separate Portfolio Businesses segment for units that don't align with its strategic goals, including Fixed Wireless Access CPE, Site Implementation, Enterprise Campus Edge, and Microwave Radio. These businesses generated approximately €0.9 billion in revenue with an operating loss of €0.1 billion over the past 12 months. The company plans to determine their future by the end of 2026.
Additionally, Nokia will create a dedicated Nokia Defense unit to develop defense solutions based on its core network technologies.
The company is replacing its previous long-term targets with new strategic metrics, including 6-8% annual revenue growth for Network Infrastructure between 2025-2028 and a target operating profit margin of 13-17% by 2028.
The restructuring includes leadership changes, with Raghav Sahgal appointed as Chief Customer Officer while Tommi Uitto will leave the company's leadership team at the end of 2025.
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