Beleaguered Nokia CEO Olli-Pekka Kallasvuo has been given his marching orders and will be replaced by Microsoft Business Division head Stephen Elop from 21 September.
Kallasvuo spent 30 years at Nokia and helmed the firm from 2006. In recent months he had come under intense pressure and faced repeated calls to quit.
A series of profit warnings, a slump in profit and the vendor's perceived failure to keep pace with the fast-growing smartphone market, eventually tipped the scales against Kallasvuo.
Even though the vendor's Symbian mobile operating system is still the market leader, it is facing massive pressure from competitors.
Kallasvuo will walk away with a compensation package totalling €4.6m (£3.8m).
Elop, who prior to Microsoft spent time with Juniper, Adobe and Macromedia, will be charged with refreshing Nokia's strategy to take account of the changing mobility market
He will need to try to maintain the vendor's market leading position on the strength of its operating system and software products, as opposed to sheer weight of shipments.
"The time is right to accelerate the company's renewal. The board believes that Stephen has the right industry experience to realise the full potential of Nokia," said board chairman Jorma Ollila in a statement.
"His strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company," Ollila added.