Home » World Business & Employment News » Nokia axing up to 14,000 jobs in a drive to cut costs

Nokia axing up to 14,000 jobs in a drive to cut costs

By Nithya Bose in World Business & Employment News, posted October 19, 2023

Nokia has confirmed job cuts between 9,000 and 14,000 by the end of 2026.

The Finnish telecommunications giant said the primary objective is to reduce costs.

This announcement follows a 20 percent decrease in sales from July to September.

This was due to a diminishing demand for 5G equipment in key markets like North America.

Nokia maintains a global workforce of 86,000 employees and has undergone multiple job cuts since 2015.

The company aims to achieve cost savings ranging from €800 million to €1.2 billion (£695 million to £1 billion) by 2026.

Customers, both business and domestic have been curbing their expenditures due to inflation and rising interest rates, which has impacted Nokia's business.

Pekka Lundmark, Nokia's CEO said cloud computing and AI advances will require "significant investments in networks that have vastly improved capabilities"

He said: "However, given the uncertain timing of the market recovery, we are now taking decisive action."

The company intends to save €400 million by 2024 and an additional €300 million in 2025 through the cost-cutting drive.

Nokia remains optimistic about improvements in its network businesses in the current quarter.

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It didn’t disclose the specifics of the job cuts or whether they would affect employees in the UK.

A spokesperson said: "We have immensely talented people at Nokia and we will support everyone that is affected by the process.”

"We are now beginning the process of consultation on initial reductions."

The spokesperson said the timing and detail of final job losses "will be decided only after careful consideration, and will depend on the evolution of end market demand."

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