Nokia set to split Global Services business from its Mobile Networks division and redraw executive responsibilities beginning April 1.
Nokia is set for a major reshuffling of business operations, announcing plans to break its Mobile Networks business into a pair of separate operating entities and a reconfiguration of executive oversight coming out of its acquisition of Alcatel-Lucent last year.
The company said beginning April 1, its Mobile Networks business would be grouped into two organizations, with the name remaining on the one focused on products and solutions, and the other now dubbed Global Services and focused on services. Despite the separation, the company said the two operations would remain closely linked.
Nokia said it will continue to report financial information for its Ultra Broadband Networks, IP Networks and Applications, and Nokia Technologies divisions. The Ultra Broadband Networks results will include the Mobile Networks, Global Services and Fixed Networks business groups; with the IP Networks and Applications results including those from its IP/Optical Networks and Applications & Analytics business groups.
As for executive oversight, Nokia is splitting responsibilities of its current chief innovation and operating officer organization, with operating activities now under a newly formed COO organization, “innovation” activities under a CTO organization and “incubation” under a chief strategy officer organization.
Along with the title reorganizations, Nokia said current CIOO Marc Rouanne will move to president of the Mobile Networks business group, where he will oversee mobile products and solutions, including the company’s 4G, 5G, cloud core, small cells and “other advanced mobile solutions.” Rouanne will report directly to Nokia President and CEO Rajeev Suri.
Current EVP of Global Services Igor Leprince will assume the role of president of the newly formed Global Services division and also report to Suri.
Monika Maurer, who is currently COO of Nokia’s Fixed Networks division, was named as Group COO and tasked with overseeing the vendor’s operating model, global operations over manufacturing and supply chain, procurement, implementation of cost saving and ongoing transformation activities, information technology, real estate and quality. Maurer will report to Suri in the role.
Nokia CSO Kathrin Buvac will take on additional responsibility in overseeing “incubation of select new business opportunities,” while chief marketing officer Barry French will be tasked with oversight of Nokia’s Health, Safety, Security and Environment division.
One position purge will come with Samih Elhage, current president of Mobile Networks, leaving the company to “pursue new opportunities. Elhage had previously served as CFO and COO at Nokia Solutions and Networks, with the departure tied to the nearly complete integration of Alcatel-Lucent.
“These changes are designed to accelerate the execution of our strategy,” said Suri, in a statement. “They will strengthen our ability to deliver strong financial performance, drive growth in services, meet changing customer demands in mobile networks, achieve our cost saving and ongoing transformation goals and enable strategic innovation across our networks business.”
Nokia early last year closed on its $16.5 billion purchase of Alcatel-Lucent, which bolstered the combined entity into a more robust competitor in the telecommunications vendor market alongside the likes of Ericsson and Huawei.
The company has since announced a number of job cuts across the organization as it looked to trim up to $1 billion in operating costs.
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