Telecom equipment maker Nokia announced the resignation of Marc Rouanne from the position of president of Mobile Networks.
Earlier, Nokia announced the resignation of Ashish Chowdary from the Nokia Group leadership team. Ilkka Rahnasto, head of its patent business, had also resigned at the beginning of last month.
Tommi Uitto will be the new president of Mobile Networks that contributes 30 percent of the revenue.
Tommi Uitto is a 23-year Nokia veteran and an expert in radio technologies. His most recent role has been leading Mobile Networks Product Sales since the acquisition of Alcatel-Lucent for 15.6 billion euros in 2016.
Nokia will be combining fixed and mobile business divisions to create a single Access Networks organization in order to improve telecom operator customer focus and simplify management structure from January 1, 2019.
Nokia’s Mobile Networks business has generated 1.623 billion euro revenue in Q3 2018. Nokia’s Fixed Networks has generated 502 million euros in Q3. Both businesses are under pressure with mobile networks growing at 2 percent and fixed business showing nil growth.
The new leaders of Mobile Networks and Fixed Networks Business Groups will report to the president of Access Networks. Nokia will be announcing the name of the head for Access Networks business.
Nokia plans to announce a president of Fixed Networks. Federico Guillen, currently the president of Fixed Networks, is becoming the president of Customer Operations, EMEA & Asia.
Nokia says the recent re-structuring is aimed at preparing Nokia for 5G business. China based Huawei, the largest telecom network maker, yesterday announced that it signed 22 commercial contracts for 5G services. Plus, Huawei is doing 5G trials with 50 mobile operators.
“Nokia has a unique advantage in the 5G era with its end-to-end portfolio,” said Rajeev Suri, president and chief executive officer of Nokia.
Nokia recently appointed Ricky Corker as president of Customer Operations, Americas. Ricky Corker, who is currently president North America, has played an instrumental role in returning the business in North America to growth and positioning Nokia strongly in 5G and other technologies.
Nokia also appointed Federico Guillen as president of Customer Operations, EMEA & Asia. Federico Guillen, currently president, Fixed Networks, has delivered strong financial performance while also investing in future-oriented opportunities such as the cable market.
Ashish Chowdhary, who was the president of Customer Operations and a member of the Nokia Group Leadership Team, will leave Nokia to take a leadership position in another company.
Nokia last month launched a new cost-cutting program and repeated an ambitious profit forecast, saying operators’ demand for 5G networks would gather pace in the remainder of the year, Reuters reported.
The networks industry has been battered by slowing demand for existing 4G networks and investor doubts over when the benefits from 5G contracts will begin.