• Nokia denies CEO replacement plan report 
• Verizon cuts 4,800 roles via voluntary exit scheme
• Italian watchdog delves into Swisscom’s planned acquisition of Vodafone Italy

In today’s industry news roundup: Nokia has denied reports that it is actively seeking to hire a new CEO to replace Pekka Lundmark; Verizon is reducing its management headcount by 4,800 roles at a cost of about $1.8bn; the Italian competition regulator has initiated in an-depth probe into Swisscom’s planned acquisition of Vodafone Italia; and more!

Nokia has strongly denied claims made in a Financial Times article that it has undertaken an “active search” for a new CEO to replace the current chief, Pekka Lundmark, and “revive falling sales”. A Nokia spokesperson stated in an emailed request for comment: “The board fully supports president and CEO Pekka Lundmark and is not undergoing a process to replace him. It is a core responsibility for every board to systematically and continuously assess and discuss the leadership team’s long-term succession plan through a comprehensive approach that covers internal and external candidates. This is the same process for our chair and board of directors. For this work we also use the help of professional advisors. Our CEO and chair are fully aware and involved in this process.” So it seems that, according to Nokia, an ongoing, regular process is in motion but not an ‘active’ process to replace Lundmark, who has been CEO since 2020, any time soon. For the first half of 2024, Nokia reported an 18% year-on-year decline in revenues to €8.9bn and a 6% dip in operating profit to €836m: Those numbers were not helped by AT&T’s decision late last year to eject the Finnish vendor from its mobile network when it decided to work primarily with Nokia’s main global rival Ericsson on its Open RAN-enabled network refresh. Lundmark suggested in the company’s second-quarter earnings report that there were signs of some recovery in the network infrastructure market, albeit more in the fixed than mobile sector. Nokia has also been rocked recently by speculation that Samsung Networks might be interested in acquiring Nokia’s mobile networks business for about $10bn: Nokia denied that any talks were ongoing and that it was committed to its mobile networks business. The pressure is certainly on Lundmark, as it is on the heads of other telecom network equipment vendors too, all of which have been suffering from reduced industry spending during the past 18 months, but for now, according to Nokia, his role is not under threat. Nokia’s share price currently stands at €3.79, more than 20% higher than at the beginning of the year. 

US telco Verizon is cutting 4,800 management roles through a voluntary redundancy scheme that it offered to staff in June this year and which will run until March next year. The operator will record a “severance charge” of about $1.8bn in its third-quarter financials “as a result of this programme but also as a result of other headcount reduction initiatives,” it noted in a regulatory filing with the Securities and Exchange Commission (SEC). About 2,400 of those managers will leave the business this month. The operator also “plans to cease use of certain real estate assets and exit non-strategic portions of certain businesses” and, as a result, record “asset and business rationalisation charges in the range of $230m to $380m”, also in the third quarter of this year. Earlier this month, Verizon announced a deal valued at $20bn to acquire fibre access network operator Frontier Communications. 

The Italian Competition Authority has opened an in-depth ‘Phase II’ investigation “to assess the acquisition of Vodafone Italia by Swisscom”, the Swiss telco noted this week. Swisscom announced an agreement to acquire Vodafone Italy for €8bn in March, having signalled its intention to do so in February, and plans to merge the mobile operator with its existing Italian fixed line operation, Fastweb. While the Italian regulator wants to have a closer look, Swisscom remains confident it can get the deal over the line. “Phase II reviews are not uncommon in the telecommunications sector. Swisscom remains convinced that the transaction is pro-competitive. We will continue to work closely and constructively with the Italian Competition Authority to secure a timely clearance.” The Swiss telco noted that, in general, the planned transaction “is on track” in that it has secured the financing for the deal and “has received unconditional approval from both the Presidency of the Council of Ministers in Italy (Golden Power legislation) and the Swiss Competition Commission,” though added the deal “is still subject to further regulatory approvals.” Swisscom expects the M&A deal to close during the first quarter of 2025. 

Alexandra Foster, the former director of BT’s Division X, has joined Fujitsu to head up the tech vendor’s unit focused on the Banking, Financial Services, and Insurance (BFSI) sector. “I look forward to collaborating with a talented team and our customers to harness AI , quantum and cutting-edge technologies, drive business transformation, and contribute to sustainability through responsible innovation. Here’s to the journey ahead!” stated Foster in this LinkedIn post. Foster noted on LinkedIn that she will be responsible for “driving digital transformation and innovation for our customers across these industries, helping them navigate the evolving technological landscape and unlock new opportunities for growth. At Fujitsu, we understand that the BFSI sector is at the forefront of change, with emerging technologies reshaping how organisations operate, engage customers, and manage risk. By leveraging cutting-edge solutions like AI, quantum, cloud services, and cybersecurity – alongside hybrid IT, business applications, workforce transformation, and core infrastructure – my team and I empower our clients to future-proof their businesses, enhance efficiency, and deliver exceptional customer experiences.” 

– The staff, TelecomTV