Nokia to cut up to 14,000 jobs

Another company announces thousands of job positions to be axed.

File photo: Nokia MWC 2023 booth

Job cuts for cost reduction

According to a report by CNN, Nokia said it could cut up to 14,000 positions to reduce its costs amid a "weaker" market environment. This move will reduce its workforce from 86,000 to around 72,000 to 77,000.

The most difficult business decisions to make are the ones that impact our people, CEO Pekka Lundmark said in the statement. We have immensely talented employees at Nokia and we will support everyone that is affected by this process.

In effect, Nokia said it will reduce staffing expenses by 10 percent to 15 percent, saving the company at least EUR 400 million (around PHP 23 billion) in 2024.

Overall, the reductions will trim Nokia’s costs by up to EUR 1.2 billion (around PHP 71 billion) by end-2026.

Nokia said it will "act quickly" on the changes.

This comes as Nokia reports a 15 percent decline in its Q3 sales versus the same period last year as "macroeconomic uncertainty and higher interest rates continue to pressure operator spending."

Mobile network sales declined 19 percent in the same quarter compared to the previous year due to a slowdown in the pace of 5G deployment in markets like India, Nokia noted.

Despite the uncertain environment, Nokia maintained its 2023 sales projection between EUR 23.2 billion and EUR 24.6 billion (PHP 1.3 trillion and PHP 1.5 trillion).

We continue to believe in the mid to long term attractiveness of our markets, Lundmark said.

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Via: CNN