Nokia Chair Sari Baldauf to Step Down Amid AI-Driven Q4 Profit Performance
Nokia Chair Sari Baldauf will step down as the company undergoes restructuring to capitalize on AI and data center demand, following a 3% decline in Q4 operating profit to 1.05 billion euros. Timo Ihamuotila is proposed as her successor, while net sales of 6.12 billion euros met analysts' expectations. Despite a 17% growth in the Optical Networks division, profit margins are under pressure from US tariffs and a weaker dollar, prompting discussions for further cost reductions.
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Nokia announced a restructuring initiative to leverage AI and data center demand amid weak 5G spending. Chair Sari Baldauf will step down, with Timo Ihamuotila proposed as her successor. Nokia's Q4 comparable operating profit fell 3% to 1.05 billion euros, meeting analysts' expectations.
Net sales reached 6.12 billion euros, also in line with forecasts. The Optical Networks division saw a 17% growth, driven by demand for AI and cloud services. Nokia aims for a comparable operating profit of 2 to 2.5 billion euros by 2026. However, profit margins have faced pressure from US import tariffs and a weaker dollar, prompting calls for deeper cost cuts.
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