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Nokia announces 14,000 job losses as 5G demand slows


www.personneltoday.com | Adam McCulloch

Finnish telecoms giant Nokia is looking to cut between 9,000 and 14,000 jobs globally by the end of 2026 as it strives to reduce costs.

The company reported a 20% fall in net sales to €4.98bn (£4.34bn) in its third quarter ending in September and pinned the job cuts against slowing demand for 5G equipment. Profit over the period plunged by 69% year-on-year to €133m.

Nokia wants to cut costs by between €800m and €1.2bn by 2026, it said. Chief executive Pekka Lundmark said the firm wanted to act quickly by cutting costs by €400m in 2024, and €300m in 2025.

Advances in cloud computing and AI will need “significant investments in networks that have vastly improved capabilities”, said Lundmark. He added that Nokia expected “an improvement in our network businesses” in the current quarter.

“I remain confident in the fundamental drivers of our business,” Lundmark said.

“Data traffic growth continues, the 5G rollout is still only around 25% complete, excluding China, and networks will [need] continued investment. Cloud computing and AI revolutions will not happen without significant investment in networks that have vastly improved capabilities.”

Before touchscreen smartphones were introduced by Apple and Samsung, Nokia was the largest handset manufacturer in the world but now concentrates on telecoms equipment after selling off its handset business.

It has about 86,000 employees around the world, but has been axing thousands of jobs since 2015.

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