Nokia has announced a significant reorganization of its corporate structure, creating two new divisions focused on technology innovation and corporate development. The changes, effective October 1, 2025, involve new executive appointments to the company's Group Leadership Team and the departure of its Chief Strategy and Technology Officer.
Key Takeaways
- Nokia is creating two new organizations: the Technology and AI Organization (TAO) and the Corporate Development Organization (CDO).
- Pallavi Mahajan, formerly of Intel, will join as Chief Technology and AI Officer.
- Konstanty Owczarek, with experience from HPE and AIG, is appointed Chief Corporate Development Officer.
- Both new executives will join the Group Leadership Team on October 1, 2025.
- Nishant Batra, the current Chief Strategy and Technology Officer, will step down on September 30, 2025.
Strategic Shift Towards AI and Development
The Finnish telecommunications company is repositioning itself to better capitalize on emerging technological trends, particularly in artificial intelligence. The restructuring is designed to enhance technology innovation and provide more focused support for business development initiatives.
Justin Hotard, Nokia’s President and CEO, explained the motivation behind the changes. He emphasized the need to concentrate on core technologies where the company can achieve significant differentiation and strengthen its capabilities in both security and AI.
"To succeed in the AI supercycle, we need to focus on where we can drive differentiation through our core technologies, strengthen our capabilities in security and AI, and maximize the value of partnerships in our ecosystem," Hotard stated.
This move reflects a broader industry trend where major technology firms are reorganizing to integrate AI more deeply into their core operations and product strategies. The creation of dedicated units for AI and corporate development signals Nokia's intent to be more agile in a rapidly evolving market.
New Leadership Appointments
Nokia has brought in two external executives with extensive experience in technology and corporate strategy to lead the new organizations. Both Pallavi Mahajan and Konstanty Owczarek will report directly to the CEO and become members of the Group Leadership Team.
Pallavi Mahajan to Lead Technology and AI
Pallavi Mahajan will assume the role of Chief Technology and AI Officer, leading the newly formed Technology and AI Organization (TAO). This division will consolidate several key functions, including the renowned Nokia Bell Labs, the company's Technology and AI Leadership, and Group Security.
Mahajan joins Nokia from Intel, where she served as Corporate Vice President and General Manager of the Data Center and Artificial Intelligence Software division. Her career includes significant roles where she managed innovation at the intersection of networking, cloud, and AI.
Mahajan's Background
Before her time at Intel, Mahajan held executive positions at Hewlett Packard Enterprise (HPE), where she led supercomputing programs and the company's hybrid cloud strategy. She also spent a considerable part of her career at Juniper Networks, where she was instrumental in the development of self-driving networks.
CEO Justin Hotard praised her appointment, noting her unique qualifications. "She is recognized for her rare combination of deep technical expertise, commercial acumen, and proven ability to scale multi-billion-dollar product portfolios at the intersection of AI, mobile, and edge computing," he said.
Konstanty Owczarek to Head Corporate Development
Konstanty Owczarek has been appointed as the Chief Corporate Development Officer. He will lead the Corporate Development Organization (CDO), which will oversee corporate strategy, strategic partnerships, mergers and acquisitions (M&A), and incubation activities, including the venture capital arm NGP Capital.
Owczarek's background includes experience in corporate development, investment banking, and strategy. He previously worked at HPE, where he led strategy for the High Performance Compute and AI business, including a strategic pivot toward Generative AI. He also held senior strategy roles at AIG.
Focus on Strategic Growth
The creation of the CDO indicates a renewed focus at Nokia on accelerating its strategic evolution. This includes exploring new partnerships, potential acquisitions, and incubating new business ventures to drive long-term growth.
Hotard welcomed Owczarek, stating, "He brings with him a unique combination of expertise spanning strategy, corporate development and finance across a variety of industries."
Leadership Transition and Departure
The restructuring coincides with the departure of Nishant Batra, who has served as Nokia’s Chief Strategy and Technology Officer for the past five years. Batra will officially step down from his role and the Group Leadership Team on September 30, 2025.
During his tenure, Batra was credited with leading a transformation at Nokia Bell Labs and positioning the company at the forefront of 6G research. He also played a key role in accelerating Nokia's digital and security transformation efforts.
Hotard acknowledged Batra's contributions in a company statement. "I would like to thank Nishant for his contribution to Nokia over the past five years," he said, highlighting Batra's work on innovation strategy and technological advancement.
Nokia's Vision for the Future
This organizational overhaul is a clear indicator of Nokia's strategic priorities. By creating distinct units for technology leadership and corporate growth, the company aims to streamline its operations and enhance its competitive edge.
The integration of Nokia Bell Labs into the new Technology and AI Organization is particularly significant. It places the historic research institution, which is celebrating 100 years of innovation, at the center of Nokia's push into artificial intelligence and next-generation networks.
The company's focus remains on being a B2B technology innovation leader, leveraging its expertise across mobile, fixed, and cloud networks. The new structure is intended to support this mission by creating more focused and empowered organizations capable of responding quickly to market changes and customer needs.
With these changes, Nokia is signaling a deliberate effort to not only participate in the AI revolution but to become a key player in shaping its future, particularly within the telecommunications and enterprise sectors.
