ESPOO, FINLAND – Finnish telecom giant Nokia announced a radical strategic overhaul today at its Capital Markets Day 2025, signaling a decisive pivot to dominate the “AI-driven transformation” of global networks. Under the leadership of President and CEO Justin Hotard, the company is streamlining its operations, setting aggressive long-term financial targets, and positioning itself as the “trusted western provider” powering the coming AI supercycle.A Simpler, AI-Focused StructureEffective January 1, 2026, Nokia will collapse its current structure into two primary, streamlined operating segments:Network Infrastructure: Identified as a growth segment focused on capitalizing on the rapid global AI and data center build-out. It will continue to serve telecom customers while focusing on Optical Networks, IP Networks, and Fixed Networks.Mobile Infrastructure: This new segment will bring together Core Networks, Radio Networks, and the high-value Technology Standards portfolio (formerly Nokia Technologies). It’s tasked with leading the charge into AI-native networks and 6G.Hotard stated, “Nokia changed the world once by connecting people — and will again by connecting intelligence. Our technology is powering the AI supercycle.”New Financial Ambition and Strategic GoalsNokia has introduced an ambitious new long-term financial target, aiming to grow its annual comparable operating profit to a range of €2.7 billion to €3.2 billion by 2028. This marks a significant increase from the €2.0 billion generated in the last twelve months (Q4’24-Q3’25).The company’s strategy is built around five key priorities, including:Accelerating growth in AI & Cloud.Leading the next era of mobile connectivity with AI-native networks and 6G.Focusing capital where Nokia can achieve differentiation.In a move to increase financial clarity, the Network Infrastructure segment has a target of 6-8% net sales CAGR and a 13% to 17% operating margin by 2028.Portfolio Review and Leadership ShiftsAs part of the shift, Nokia has moved several non-core business units—including Fixed Wireless Access CPE and Microwave Radio—into a new Portfolio Businesses segment for future value assessment. These units generated approximately €0.9 billion in sales over the past year.Hotard will temporarily lead the new Mobile Infrastructure segment. The leadership team also sees Raghav Sahgal become the Chief Customer Officer, while Tommi Uitto will step down from the Group Leadership Team. Furthermore, Nokia is launching Nokia Defense as an incubation unit to develop defense-grade solutions for the US, Finland, and other allied nations.These changes underscore Nokia’s commitment to simplify its operations and dedicate its resources to secure, advanced connectivity at the heart of the world’s digital transformation.