Nokia lays off 2,350 employees, China team worst hit
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.
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.
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.
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.
