Nokia today said it’s making changes in its organizational structure and group leadership team, effective April 1.
Most notably, Samih Elhage, president of Mobile Networks at Nokia, its largest business group, will be stepping down from his position “to pursue new opportunities,” the company said.
The restructuring also includes the separation of Nokia’s current Mobile Networks business group into two distinct organizations. One is focused on products and solutions, called Mobile Networks, and the other is focused on services, called Global Services.
Even further, this means that the company’s Chief Innovation and Operating Officer (CIOO) position will be split. Its current operating activities will be switched to a newly-appointed COO. Innovation efforts will be managed by Nokia’s CTO, and incubation will be overseen by Nokia’s CSO.
Nokia’s current CIOO Marc Rouanne will become president of the Mobile Networks business group, remaining on the group leadership team. And Executive Vice President of Global Services Igor Leprince will become president of the Global Services business group and will join the group leadership team as a new member.
Monika Maurer, currently COO of Fixed Networks will take on the Role of Group COO and is new to the group leadership team. Marcus Weldon, president of Nokia Bell Labs and CTO will maintain his responsibilities and will join the group leadership team as a new member.
Nokia CSO Kathrin Buvac will take on more responsibilities for incubation of new business opportunities, and Chief Marketing Officer Barry French will assume additional responsibilities for health, safety, security, and environment. Both remain on the group leadership team.
These changes come as the company is faced with slowing demand for 4G services and increased competition from companies like Huawei and ZTE, the Wall Street Journal reported. Nokia’s Mobile Networks business saw its sales decline 14 percent year-over-year during its fourth quarter 2016.
Selling telecommunications equipment is Nokia’s core business, but it has also shifted its focus to build a software business for its Internet of Things (IoT) and efforts including its WING and Impact platforms as well as its new cloud packet core. These services are part of its bigger plan to support broadband growth and help enterprises manage connectivity on different types of networks.