Nokia to cut 14,000 jobs after profit slump

  • Nokia said it would cut up to 14,000 jobs as part of a cost-cutting plan following a fall in third-quarter earnings.
  • The Finnish telco said it would reduce its cost base and increase operational efficiency to “address the challenging market environment”.

The new Nokia logo will be displayed on the phone and the Nokia logo will be displayed on the screen.

NoorPhoto | NoorPhoto | Good pictures

Nokia said on Thursday it would cut up to 14,000 jobs as part of a cost-cutting plan following a third-quarter revenue decline.

The Finnish telco said it would reduce its cost base and increase operational efficiency to “address the challenging market environment”.

It aims to reduce its cost base by 800 million euros ($842.5 billion) from 2023 and 1.2 billion euros by the end of 2026 on a gross basis.

This will reduce the current workforce of 86,000 to 72,000 to 77,000.

The significant layoffs come after Nokia reported third-quarter net sales down 20% year-on-year to 4.98 billion euros. Profits for the period fell 69% year-on-year to 133 million euros.

Nokia, one of the world’s largest telecom equipment makers, faces headwinds from a slowing global economy and infrastructure cost-cutting by mobile operators.

Sales from Nokia’s biggest unit by revenue, its mobile networks business, fell 24% year-on-year to 2.16 billion euros, with the division’s operating profit diving 64% year-on-year.

Nokia said this was mainly driven by a decline in North America. The company described sales volume in India as “neutral,” with 5G deployments “normalizing.”

5G is the next generation of mobile internet that promises faster speeds.

See also  Charlotte shooting: Four officers shot dead, four injured in North Carolina home invasion

Leave a Reply

Your email address will not be published. Required fields are marked *