Microsoft business chief to take top role at Nokia

Posted by Steven Allen on 13th Sep 10

Mobile phone giant Nokia has announced its new chief executive will be Microsoft’s Stephen Elop. He will be the first non-Finn in the company’s history to take the reigns, and replaces Olli-Pekka Kallasvuo, who has been in the role since 2006. Mr Elop is leaving his position as Microsoft’s business manager after less than two years in the position, and will start at the telecom on 21 September.

Jorma Ollila, Nokia’s chairman, said he had faith in Mr Elop’s ability to steer the company in the right direction. He added that as Nokia attempts to transform itself, Mr Elop’s experience in management restructuring, leadership and his software background would prove invaluable.

Outgoing CEO, Mr Kallasvuo, has been finding his position increasingly untenable as Nokia announced a profit slump of 40 per cent for its second-quarter. The company has also been forced to issue two profit warnings recently and saw its share value drop by 40 per cent in the quarter between March and June.

Mr Elop said he was expected to help Nokia navigate the current period of disruption. He added that new technologies such as cloud computing, social networking and the development of the smartphone were all challenges for the telecom giant.

Mr Ollia said that Nokia had been searching for a replacement for Mr Kallasvuo for the last few months and added that a number of internal candidates had been considered. He went on to say that he believed Mr Elop understood the cultural sensibilities of taking on the head role at Nokia and would be able to cope with the company’s Finnishness.