Listeds - Nokia reorganizes into two operating segments to boost innovation

Business

Nokia reorganizes into two operating segments to boost innovation

Nov 24, 2025

Credit: Nokia

Nokia has unveiled a sweeping new strategy aimed at positioning the Finnish telecom equipment provider to lead the AI-driven transformation of global networks.

Announced at its Capital Markets Day 2025, the plan includes a streamlined operating model, fresh long-term financial targets, new strategic KPIs, and changes to its leadership team.

Beginning 1 January 2026, Nokia will reorganize into two core operating segments: Network Infrastructure and Mobile Infrastructure. Network Infrastructure, led by David Heard, is expected to benefit from global AI and data center expansion. The Mobile Infrastructure segment will be overseen by CEO Justin Hotard on an interim basis and will focus on AI-native networks and 6G.

With the simplified organizational structure, Nokia targets to grow its annual comparable operating profit to a range of EUR 2.7 to 3.2 billion by 2028, surging from the EUR 2.0 billion generated in the last 12 months (Q4’24-Q3’25).

President and CEO Hotard said, “Nokia changed the world once by connecting people — and will again by connecting intelligence,” emphasizing the company’s ambition to power the emerging AI supercycle.

Nokia also appointed Raghav Sahgal as chief customer officer, while several non-core units will transition into a newly created Portfolio Businesses segment.

Authors

Emmi Laine

Emmi Laine is head of business content at Listeds and our lead for finance and business coverage. She sets the editorial agenda, interviews Nordic business leaders, and writes stories, newsletters, and social content on timely market and corporate topics. Emmi brings nearly eight years of experience from Shanghai's Yicai Global / Yicai Media Group, where she was awarded for reporting on China’s economy, finance sector, and technology innovation. She holds an MSc in Innovation and Entrepreneurship from ESADE Business School in Barcelona and a Master’s degree in International Design Business Management from Aalto University. She also holds a Bachelor’s degree in Culture Studies with a major in Journalism from Stockholm University and has studied Mandarin Chinese and Chinese culture. Emmi is a Finnish citizen and has lived in Finland, Sweden, China, and Portugal.