Nokia Chief Executive Rajeev Suri will depart in September and be replaced by Pekka Lundmark, who used to work for the Finnish firm and is the current CEO of vitality group Fortum, Nokia stated on Monday.
Suri has been in the position for six years and was previously the head of Nokia Siemens Networks.
The Finnish firm has been struggling to regain investors’ confidence after issuing a surprise revenue warning in October that cut a third of its value and forcing the corporation to admit some delays in its 5G development.
Nokia witnesses severe competition from Sweden’s Ericsson and China’s Huawei in the contest to deliver 5G networks to operators worldwide.
Lundmark, chief of Fortum since 2015, held multiple executive positions at Nokia between 1990 and 2000, along with VP of strategy and business growth at Nokia Networks.
Lundmark headed Fortum to embark on a bold effort to gain control of its German competitor Uniper, resulting in a power deadlock between the companies that has yet to be resolved.
Before his time at Fortum, Lundmark led Finnish crane manufacturer Konecranes for a decade until 2015.
The chairperson cited his focus “on strategic clarity, operational excellence and powerful financial efficiency.”
Nokia’s October surprise profit warning forced it to stop dividend payouts.
Nokia shares had been lifted last week after the Finnish telecom network tools manufacturer was considering asset sales and mergers.
Nevertheless, a source near the corporation said there was no truth to the report.