Vintage tech brand Nokia has unveiled a major strategic overhaul, dividing its operations into two primary segments, as it targets annual operating profits of €2.7 billion to €3.2 billion by 2028.
The Finnish telecommunications giant says it will reorganise its operations into Network Infrastructure and Mobile Infrastructure units from 1 January 2026 to capitalise on the “AI supercycle”.
“Nokia changed the world once by connecting people — and will again by connecting intelligence,” said Justin Hotard, President and CEO of Nokia.
The new Network Infrastructure segment will focus on the high-capacity optical and IP networks required to link AI data centres, whilst the Mobile Infrastructure division will consolidate the company’s radio networks with its technology standards business.
Future direction
The company identified several non-core units, including fixed wireless access and microwave radio, that generated approximately €900 million in net sales over the last 12 months but operated at a €100 million loss. These will be moved into a separate “Portfolio Businesses” segment as the company assesses their future direction.
“We’re doubling down on being a focused connectivity infrastructure provider — you can’t win in connectivity without winning in AI,” Hotard told Bloomberg.
The restructuring follows a recent $1 billion deal with Nvidia Corp and the acquisition of Infinera Corp, signalling the company’s intent to embed itself in the hardware stack powering global AI development.
