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HELSINKI - Nokia announced on Wednesday a strategic reorganization into two primary operating segments as it aims to capitalize on the AI-driven transformation of networks, according to a company press release.
The Finnish telecommunications equipment maker will restructure its operations into Network Infrastructure and Mobile Infrastructure segments effective January 1, 2026, simplifying its business model to better align with customer needs and accelerate innovation.
Nokia set a new long-term financial target to achieve comparable operating profit of €2.7 billion to €3.2 billion by 2028, up from €2.0 billion generated in the last 12 months.
"Nokia changed the world once by connecting people — and will again by connecting intelligence," said Justin Hotard, President and CEO of Nokia, who will lead the Mobile Infrastructure segment on an interim basis.
The Network Infrastructure segment, which will continue to be led by David Heard, will focus on capitalizing on AI and data center expansion while serving telecommunications customers. It will consist of three business units: Optical Networks, IP Networks, and Fixed Networks.
The Mobile Infrastructure segment will combine Nokia's Core Networks portfolio, Radio Networks portfolio, and Technology Standards (formerly Nokia Technologies), focusing on core and radio network technology leadership.
As part of the reorganization, Nokia will move several non-core units into a new "Portfolio Businesses" segment while it evaluates their future. These units generated approximately €0.9 billion in sales with an operating loss of €0.1 billion over the past year.
The company also announced leadership changes, with Raghav Sahgal becoming Chief Customer Officer and Patrik Hammarén continuing as President of Technology Standards. Tommi Uitto will step down from the Group Leadership Team effective December 31.
Nokia will begin reporting under the new segment structure with its first quarter 2026 financial results.
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