Nokia To Cut 14,000 Jobs to Reduce Costs Amid Market Uncertainties

Helsinki: Nokia, a leading telecom gear manufacturer, has announced plans to cut up to 14,000 jobs worldwide, approximately 16% of its workforce, in a bid to reduce costs following a significant decline in third-quarter sales and profits. The Finnish company is implementing these measures to enhance operational efficiency and lower its cost base in response to current market uncertainties. Nokia aims to reduce its cost base by €800 million to €1.2 billion by the end of 2026, resulting in a decrease in its workforce from 86,000 employees to a range of 72,000 to 77,000 during that timeframe.

In the third quarter, Nokia’s sales dropped by 20% to €4.98 billion from €6.24 billion in the same period last year, with comparable net profit falling to €299 million from €551 million. The mobile networks division, the company’s largest revenue generator, saw a 24% decline in revenue to €2.16 billion, primarily due to challenges in the North American market, and operating profit for the division plummeted by 64%.

Nokia’s CEO, Pekka Lundmark, remains optimistic about the long-term potential of their markets, emphasizing the importance of significant investments in advanced network capabilities for cloud computing and AI revolutions. Despite market uncertainties, Nokia is taking decisive action at strategic, operational, and cost levels to strengthen the company and create value for shareholders.

Nokia, a major player in the 5G technology industry, operates alongside companies such as Ericsson, Huawei, and Samsung. Ericsson also announced earlier this year that it is reducing its global workforce by 8% to cut costs.