Nokia, a Finland-based telecommunications equipment company (separate from the mobile phone business now operated by HMD Global), has announced plans to reduce its workforce by approximately 9,000-14,000 employees in order to cut costs by €800-1,200 million by the end of 2026. This announcement comes alongside the latest quarterly report, which shows that Nokia’s revenue decreased by 20% compared to the previous year, amounting to €4,982 million. Additionally, net profit dropped by 69% to €133 million, primarily due to the global economic downturn and reduced spending by mobile network operators worldwide. Nokia highlighted a significant revenue decline in the American market, while India remained resilient due to the rapid expansion of 5G networks.
In a similar vein, Ericsson, another major telecommunications company in Europe, had previously announced plans to lay off 8,500 employees.
TLDR: Nokia is slashing its workforce by 9,000-14,000 employees to cut costs and aims to save €800-1,200 million by 2026. The company’s revenue declined by 20% and net profit by 69% amid global economic challenges. Meanwhile, Ericsson is also reducing its workforce by 8,500 employees.