(Reuters) -Nokia unveiled a new strategy on Wednesday focused on artificial intelligence, as the Finnish telecoms equipment maker strives to simplify its business and boost annual core profit by as much as 60% over the next three years.
From 2026, the company plans to reorganise into two main segments – network infrastructure and mobile infrastructure – to accelerate development of AI and 6G networks, it said in a statement.
It is now aiming for annual comparable operating profit of between 2.7 billion euros and 3.2 billion euros ($3.12 billion and $3.7 billion) by 2028, up as much as 60% from 2 billion euros in the last year.
Nokia has been struggling with a slowdown in 5G investments and decided to boost its AI capabilities earlier this year by acquiring U.S. optical networking gear provider Infinera.
The acquisition has lifted sales and was followed by a 1-billion-euro equity investment from chipmaker Nvidia, which bought a 2.9% stake in the Finnish group.
Nokia also said it would launch a new defence incubation unit to deliver secure connectivity to Western countries and cut group operating expenses to 150 million euros by 2028 from 350 million euros.
(Reporting by Gianluca Lo Nostro. Editing by Ros Russell and Mark Potter)
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