Lundmark, 61, will step down on March 31 and Hotard will take over the next day, according to a statement by the Espoo, Finland-based company today.

The outgoing CEO will continue as an adviser to the Hotard until the end of the year.

The Finnish maker of 5G networks has in recent years struggled with low operator investment into the next-generation gear, including the loss of a key AT&T Inc contract worth US$14 billion to Swedish rival Ericsson AB in 2023.

It’s now seeking to expand in the data centre market.

Questions have swirled in recent months over whether Lundmark would exit the company.

The Financial Times in September reported the board was reviewing candidates to replace him.

Nokia then denied the report, saying it regularly conducts succession planning.

Under Lundmark’s four-and-a-half year tenure, Nokia shares have delivered an average annualised return of 5%.

That compares with a return of 11% for Nokia’s peers, according to data compiled by Bloomberg.

Nokia said last month that it expects 2025 operating profit of €1.9 billion to €2.4 billion (US$2 billion to US$2.5 billion), lower than the €2.62 billion in comparable operating profit in the prior year.

Lundmark said at the time that the guidance represented “a strong improvement,” once you exclude one-time items amounting to more than €700 million that benefited 2024.

Hotard, who was born in 1974 and is a US national, has also worked at Hewlett Packard Enterprise Co.