The network equipment company Nokia is announcing the first phase of its new strategy as well as changes in its operating model and management team, the company says in a press release.
Nokia will announce its new strategy in three phases.
The new operating model to be announced today will enter into force on 1 January.
After that, in addition to President and CEO Pekka Lundmark, Nokia's Management Team will include the directors of four new business groups.
"Our goal is to create a strategy for Nokia that will enable us to take advantage of the ongoing market change, improve our performance and create long-term value for shareholders," said Lundmark, who published his first interim report today as Nokia's CEO.
Nokia will establish four new business groups and a separate Customer Experience unit, which will include customer teams, regional and country management, and marketing.
Ricky Corker, who is currently the head of American customer business on the company’s board of directors, has been appointed head of the unit.
The new business groups are Mobile Networks, IP and Fixed Networks, Cloud and Network Services and Nokia Technologies.
Mobile Networks includes mobile networks and their deployment, maintenance and customer services, as well as network management software.
Tommi Uitto has been appointed Director of Mobile Networks, who will continue in his current position.
IP and Fixed Networks includes the existing IP Routing, Optical Networks and Fixed Networks businesses and the Alcatel Submarine Networks business.
Federico Guillén, who is currently Senior Vice President, Customer Services, Nokia EMEA and APAC, has been appointed President of the Business Group.
Cloud and Network Services includes the existing Nokia Software business excluding network management, Nokia Enterprise, backbone networks and network management services for the current Global Services business.
Raghav Sahgal has been appointed President of the Business Group.
In his current organizational model, he has led the Enterprise business.
The Nokia Technologies business group will remain largely unchanged.
Jenni Lukander will continue as President of the Business Group.
The size of the board will apparently decrease from the current 17 directors when the units are merged.
In the organizational reform bulletin, Nokia does not mention in which roles the executives of the existing units who fall from the Executive Board will continue in Nokia.
The release also does not mention Marcus Weldon, Chief Technology Officer of Nokia and President of Nokia Bell Labs.
Nokia will release more information on its strategy on December 16 and thereafter on its Capital Markets Day on March 18.