Nokia to chop as many as 14,000 jobs as revenue drops by 69%

Nokia on Thursday set out plans to chop its workforce by as much as 14,000 because it reported a steep drop in third-quarter revenue.

The telecom tools maker mentioned it’s seeking to scale back its workforce to between 72,000 and 77,000 employees, from 86,000 now, by the top of 2026. Nokia

mentioned that might save the corporate as a lot as €1.2 billion ($1.3 billion), or as much as 15% of personnel bills.

“We continue to believe in the mid to long term attractiveness of our markets. Cloud Computing and AI revolutions will not materialize without significant investments in networks that have vastly improved capabilities. However, given the uncertain timing of the market recovery, we are now taking decisive action on three levels: strategic, operational and cost. I believe these actions will make us stronger and deliver significant value for our shareholders,” mentioned Pekka Lundmark, president and chief govt, in a press release.

The firm didn’t present a regional breakdown of the job cuts however mentioned it’s going to “act quickly” because it focused cellular networks, cloud and community providers, in addition to its company perform, for cuts.

Nokia’s revenue dropped by 69% to €133 million, or 2 cents a share, as income fell 20% to €4.98 billion. Analysts polled by Visible Alpha forecast earnings of €395 million on income of €5.66 billion.

In echoes of what rival Ericsson
mentioned on Tuesday, Nokia mentioned a slowdown in India’s 5G deployment couldn’t offset the scenario in North America.

Nokia mentioned it’s monitoring towards the decrease finish of its internet gross sales vary for 2023 and towards the mid-point of its comparable working margin vary.

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