Nokia's Leadership Shift: Embracing AI Amidst Financial Challenges

Nokia's chair Sari Baldauf is stepping down, with Timo Ihamuotila proposed as successor. Despite AI-driven quarterly earnings, Nokia faces profit margins pressure due to U.S. tariffs and a weak dollar. The company's restructuring efforts continue as it aims to balance challenges in the 5G market.

Finland's Nokia announced on Thursday that its longtime chair, Sari Baldauf, will step down. The telecom giant is proposing Timo Ihamuotila, current vice chair, as her successor. The company met quarterly earnings expectations driven by its pivot towards artificial intelligence.

Baldauf, a key figure in Nokia's history, had returned to chair the board in 2020 after her influential tenure from 1994 to 2005, a period during which Nokia became a global leader in the mobile phone sector. Ihamuotila served as Nokia's chief financial officer between 2009 and 2016 and will leave Swiss group ABB by 2026.

Despite a 3% drop in comparable operating profit for the fourth quarter compared to last year, Nokia's earnings matched analyst forecasts. While restructuring efforts are underway, challenges such as U.S. import tariffs and a weaker dollar are squeezing profit margins, necessitating possible cost cuts. The company forecasts a rise in operating profits by 2026, though dividends are set to remain stable.

(With inputs from agencies.)