Finnish internet giant Nokia has just announced that Rajeev Suri is stepping down as chief executive. “After 25 years at Nokia, I wanted to do something different,” says Suri. Nokia is working on a smooth transition plan that will take over from Pekka Lundmark, the outgoing president and chief executive of Fortum, a energy company.
Rajeev Suri (photo: Nokia)
After leaving office on August 31, Rajeev Suri will continue as Nokia’s board adviser until January 1 next year. Pekka Lundmark is expected to take over his new role on September 1 this year.
Just a few days ago, Bloomberg reported that Nokia was exploring a range of strategic options, including the sale of some of its business assets and the consolidation of potential deals. Suri said in a statement:
Nokia will always be a part of my life, and thanks to years of working with everyone, they have helped Nokia become a better place and made me a better leader.
Despite my impending departure, I am confident that Nokia will perform better over time and be proud of it.
Pekka Lundmark is the best candidate and I look forward to a smooth transition with him and wish him the greatest success in his new position.
Like competitors such as Ericsson, the communications industry is undergoing an active transformation to support the technology and products of the 5G network in the market. But some analysts say Nokia’s $16.6 billion acquisition of telecoms equipment maker Alcatel-Lucent in 2015 distracted it from becoming a market leader in 5G.
Nokia reported a 3% increase in operating profit to 1.24 billion euros (approximately $1.35 billion) in 2019, according to the technology division responsible for managing the company’s patent portfolio. However, sales fell 1 per cent to 14.9 euros. Rajeev Suri’s share price fell by more than a third during his tenure.