Summary: Nokia plans to reduce its workforce by up to 14,000 employees following a significant drop in third-quarter earnings. The company aims to cut costs and increase operational efficiency to address market challenges.
Nokia, the Finnish telecommunications giant, announced on Thursday that it will cut up to 14,000 jobs as part of a cost reduction plan. The company plans to lower its cost base by between 800 million euros and 1.2 billion euros by the end of 2026. This will result in a reduction in the number of employees from 86,000 to between 72,000 and 77,000. The decision comes after Nokia reported a 20% decline in third-quarter net sales and a 69% decline in profit compared to the previous year. The decline in sales and profit is attributed to a slowing global economy and reduced infrastructure spending by mobile operators. Notably, Nokia’s mobile networks business, its largest revenue-generating unit, saw a 24% decline in sales and a 64% decline in operating profit. The company pointed out that this was mainly due to decreases in North America and moderated sales volumes in India as 5G deployments normalize.
Tags: Nokia, job cuts, cost reduction plan, third-quarter earnings, telecommunications