Nokia to Cut up to 14,000 Jobs as Part of Cost Reduction Plan
Nokia on Thursday announced plans to cut up to 14,000 jobs as a result of a significant decline in third-quarter earnings.
The Finnish telecommunications company aims to reduce costs and improve operational efficiency in response to the current challenging market conditions.
By the end of 2026, Nokia plans to decrease its cost base by 800 million euros ($842.5 billion) to 1.2 billion euros, resulting in a workforce reduction from the current 86,000 employees to between 72,000 and 77,000.
This decision comes after Nokia reported a 20% decrease in net sales to 4.98 billion euros for the third quarter, with profits plummeting by 69% to 133 million euros.
As one of the world’s largest telecommunications equipment manufacturers, Nokia has been adversely affected by the global economic slowdown and reduced infrastructure spending by mobile operators.
The mobile networks business, Nokia’s highest revenue unit, experienced a 24% decline in sales to 2.16 billion euros, while operating profit for the division dropped by 64%.
Nokia attributed these decreases primarily to declining sales in North America and moderated sales volumes in India due to the normalization of 5G deployments.
5G is the next-generation mobile internet technology that promises faster speeds.
