Nokia lays off 2,350 employees, China team worst hit
What's the story
Telecommunications giant Nokia has confirmed the termination of nearly 2,000 jobs in Greater China as part of its ongoing cost-reduction strategy.
The company also plans to eliminate an additional 350 positions across Europe.
As of December 2023, Nokia's workforce consisted of 10,400 employees in Greater China and a significantly larger number of 37,400 staff members throughout Europe.
Workforce goals
Nokia's workforce reduction plan targets 72,000-77,000 employees by 2026
Nokia's latest layoffs in Greater China account for nearly one-fifth of its total workforce in the region.
The company has also started consultations for the proposed termination of 350 jobs across Europe.
These moves are part of a larger plan, announced last year, to downsize its global workforce from around 86,000 to between 72,000-77,000 employees by 2026.
Savings target
Nokia's cost-cutting strategy aims to save €1.2 billion by 2026
Nokia's job cuts are part of a broader cost-reduction plan, which aims to save between €800 million and €1.2 billion by 2026.
Although its third-quarter operating profit rose 9% mainly due to these cost cuts, the company's net sales missed expectations, causing a 4% drop in its share value.
However, Nokia has already achieved gross savings of €500 million through this strategy.
R&D assurance
Nokia's cost cuts won't impact R&D, says CEO Pekka Lundmark
Nokia's CEO Pekka Lundmark has assured that the company's cost-cutting measures won't affect its research and development (R&D) efforts.
He said he was happy with the current pace of cost reduction, adding that Nokia is slightly ahead of its planned schedule.
Currently, Nokia employs just over 78,500 people worldwide.