Nokia has announced its restructuring plans for its divisions starting next January 1, 2026when will it work focused on two business areas main: Network Infrastructure and Mobile Infrastructure. Those responsible have taken the step to advance in the transformation of AI networks, and to grow in the development of mobile networks based on AI, with 6G.
The networks that Nokia will work on in its Network Infrastructure division will cover optical networks, IP networks and fixed networks. For each of them a specific area will be created. With this, Nokia aims to achieve an annual net sales growth rate of between 6% and 8% between now and 2028.
As for Mobile Infrastructure, it will cover the areas of core networks, the radio network portfolio and Nokia’s technological standards, which were previously under Nokia Technologies. He will be responsible for everything related to core and radio network technology and services to move towards native AI networks and 6G. It will have three business units: Core Software, Radio Networks and Technology Standards, the former Nokia Technologies.
According to company officials, with this change its networking business will be strategically positioned to take advantage of the growth of AI, as well as that of data centers, and their expansion. Despite this, the company’s business area that will bring the greatest benefits in the coming years is mobile infrastructure. With it, Nokia has set a goal of achieving a margin of between 48% and 50% by 2028.
This restructuring also means that several business units that Nokia now considers non-core have been moved to a new business portfolio, as subdivisions of it. In addition, there will be new managers from different areas. Thus, customer service will have a new director: Raghav Sahgal. Patrick Hammarén will continue to be part of the group’s management as President of Technology Standards.
David Heard will continue to lead the network infrastructure, while provisionally, the mobile infrastructure will be provisionally under the command of CEO and President of the company, Justin Hottarduntil a selection process is completed to find the right person in charge.
In addition to this change, Nokia hopes to reduce its expenses. operations by 200 million euros by 2028, reducing them from 350 million euros to 150 million euros. In addition to these changes, the company has communicated its quarterly results, which reflect a year-on-year increase in revenues in the last quarter of 12%, up to 4,830 million of euros. Those responsible have assured that they continue towards the scope of the forecasts they had for this year 2025.
As Justin Hottard commented, «Nokia changed the world once by connecting people, and it will do so again by connecting intelligence. As a trusted Western provider of advanced, secure connectivity, our technology is driving the AI supercycle. From fixed to mobile infrastructure, we are developing technology that accelerates value for your customers. I’m proud of the work the Nokia team is doing to focus and lead in this critical era of connectivity.«.
