Nokia merges fixed and mobile arms as it looks to change fortunes

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Nokia is bringing together its mobile and fixed network businesses under one umbrella, but at the cost of its current President of Mobile Networks.

A new Access Networks Division will comprise Nokia's current Mobile and Fixed Networks business groups.

The heads of both groups will report into a new President of Access Networks, who is yet to be announced.

The vendor is also seeking someone to head its Fixed Networks business group.

President of Mobile Networks Marc Rouanne will leave the vendor following the changes, which fall into place on 1 January next year.

His replacement will be Tommi Uitto, a 23 year veteran of the business and the current head of its Mobile Networks Product Sales since the Alcatel Lucent merger.

Nokia CEO Rajeev Suri said: "Nokia has a unique advantage in the 5G era with its end-to-end portfolio.

"By creating a single Access Networks organization that includes both fixed and mobile, we can improve our customer focus, simplify our management structure, and more efficiently leverage our full portfolio."

He added: "Tommi is a strong leader with the right background in both sales and product development and I am pleased that he has accepted this role.

"He brings deep credibility from across the telecommunications industry and a proven ability to drive product leadership and business performance."

Last month Nokia announced a new cost cutting plan at the expense of thousands of jobs. The vendor is aiming to save €700 million each year by 2020.

The plan followed Nokia posting a 27 percent drop in operating profit to €668 million for the third quarter of 2018.