Nokia to cut 14,000 jobs in cost-cutting drive

Nokia is set to reduce its workforce by "up to 14,000 jobs" over the next three years to streamline expenses following a more severe-than-anticipated drop in mobile network equipment demand.

Details

• According to a report by Reuters, Nokia, the Finnish telecom company, revealed its intention to eliminate 14,000 positions on Thursday (October 19)
• This step is a response to declining third-quarter earnings, with a focus on enhancing operational efficiency and cutting costs in the face of a challenging market environment.

• Nokia, headquartered in Espoo, Finland, has not disclosed the specific locations for the job cuts. The company has approximately 37,700 employees in Europe, including the UK (with offices in Bristol, Cambridge, and Reading).
• Job reductions may also impact its US operations, where it employs around 10,500 staff in cities such as Chicago and Dallas.

Reason behind the decision

• Nokia attributed this decision to diminished performance in North America.
• They also noted that sales in India, a key market, were "moderated" as 5G deployment "normalised."
• Nokia is actively involved in India's 5G rollout, the next-gen mobile internet technology promising faster speeds.

• The Finnish tech company aims to cut 16% of its 86,000 global workforce to save €1.2 billion by 2026.

• Nokia took this step after reporting a 70% drop in third-quarter profits, down to €133 million (£116 million) from €428 million last year.

• The company anticipates swift action to achieve €400 million in savings next year and an additional €300 million by 2025.