1, December, 2023
HomeTechnologyNokia to Cut 14,000 Jobs in Bold Cost-Cutting Move Amid Challenging Market

Nokia to Cut 14,000 Jobs in Bold Cost-Cutting Move Amid Challenging Market

Published on

In a decisive effort to reduce costs and ensure financial stability, Nokia Corporation has announced significant workforce reductions. The company is set to lay off 14,000 employees as it strives to streamline its operations.

The decision follows a disappointing 20 percent decline in third-quarter sales, primarily attributed to sluggish demand for 5G equipment, particularly in key markets like North America. In an official statement released on Thursday, Nokia expressed its intention to eliminate up to 14,000 jobs to streamline operations and reduce costs.

Nokia’s cost-cutting strategy is part of a broader plan to achieve savings ranging from 800 million euros ($842 million) to 1.2 billion euros by 2026. The company’s ultimate goal is to align itself with a long-term comparable operating margin target of at least 14 percent by 2026. This ambitious cost-saving program is expected to result in a leaner workforce, reducing the current 86,000 employees to a range of 72,000 to 77,000 employees.

The company’s announcement indicates that the program aims to deliver immediate benefits, with a minimum of 400 million euros in in-year savings expected by 2024, and an additional 300 million euros in 2025. This strategy is a response to the challenging conditions Nokia faces in the fluctuating 5G equipment market and evolving customer demands.

In the third quarter, comparable net sales plummeted to 4.98 billion euros, a stark decline from 6.24 billion euros in the same period the previous year, missing the estimated 5.67 billion euros, as indicated by an LSEG poll. Despite these challenges, Nokia’s leadership remains optimistic, with Chief Executive Pekka Lundmark expressing confidence in a more typical seasonal improvement for their network businesses in the upcoming fourth quarter.

Nokia’s decision to reduce its workforce reflects the broader trend in the tech industry, where several major companies, including Microsoft, Google, Meta, Twitter, and others, have undertaken significant layoffs as part of their efforts to optimize operations and improve financial stability.

Latest articles

Prabhas and Prithviraj in Salaar Part 1 – Action-packed Trailer Out

The long-awaited trailer for Prabhas' upcoming film, Salaar Part 1: Ceasefire, has finally been...

Market Records New Highs – Nifty50, Sensex Surge Driven by GDP Growth and Exit Polls

The Nifty50 index soared to a fresh high as India's economy expanded faster than...

TCS Buyback Opens – Understanding the Potential Benefits for Shareholders

Tata Consultancy Services (TCS) witnessed a surge in its stock price on December 1...

More like this

Google Enhances RCS Messaging with Photomoji, Voice Moods, and More Features

Google commemorates a significant milestone as it reaches one billion users on its RCS...

Apple’s iPhone 16 Lineup to Introduce Solid-State Action Button – Insider Report

Apple's anticipated iPhone 16 series, including the base iPhone 16, iPhone 16 Plus, iPhone...

Google’s Saikat Mitra Explores Challenges in Curbing Malicious Loan Apps

Saikat Mitra, Google's Vice President and Head of Trust and Safety for Asia-Pacific, sheds...
Enable Notifications OK