Nokia to Cut up to 14,000 Jobs Amidst Challenging Market Environment - The Top Society

Nokia to Cut up to 14,000 Jobs Amidst Challenging Market Environment

...experiences plunge in third quarter earnings


In a move to counter the adverse impacts of a tumultuous market landscape, Nokia announced a significant downsizing initiative, projecting the reduction of its workforce by up to 14,000 employees.

This measure, part of the cost reduction plan, is geared towards enhancing operational efficiency and streamlining the company’s cost base.

The Finnish telecommunications giant aims to scale down its expenses, targeting a substantial reduction ranging from 800 million euros to 1.2 billion euros by the conclusion of 2026, from the current 86,000 employees to a projected range of 72,000 to 77,000.

The decision comes in the wake of a staggering 20% decline in net sales during the third quarter, amounting to 4.98 billion euros, while the profit witnessed a sharp 69% plunge to 133 million euros year-on-year. Notably, this move echoes a similar strategy adopted by Nokia’s competitor, Ericsson, which recently disclosed plans to cut 8,500 jobs as part of its own cost-cutting measures.


With the global economy exhibiting signs of deceleration and mobile operators implementing infrastructure spending reductions, Nokia has encountered persistent challenges.

Its mobile networks business, the most significant revenue-generating segment, suffered a 24% decline in sales, reaching 2.16 billion euros. The division’s operating profit plummeted by 64% year-on-year, primarily attributable to setbacks in the North American market.

Moreover, Nokia highlighted a moderation in sales volumes in the crucial market of India, attributed to the normalization of 5G deployments. It is worth noting that Nokia plays a vital role in the 5G rollout in India.

In the United States, notable cost-cutting endeavors have unfolded, particularly with major carriers such as Verizon and AT&T.

Nokia CEO Pekka Lundmark said in a Thursday statement that the decline in mobile networks revenue was owed to “some moderation in the pace of 5G deployment in India which meant the growth there was no longer enough to offset the slowdown in North America.”

The corporation remains steadfast in its projections, anticipating annual net sales to fall within the bracket of 23.2 billion euros to 24.6 billion euros.

“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 continued investment. Cloud computing and AI revolutions will not happen without significant investment in networks that have vastly improved capabilities.”

Nokia’s figures follow the recent publication of Sweden’s Ericsson’s third-quarter outcomes on Wednesday, revealing a revenue downturn and analogous challenges in the North American market.

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Ericsson CEO Borje Ekholm warned in a Wednesday statement that the “underlying uncertainty impacting” its mobile networks business will persist into 2024, casting doubt over a recovery for telecommunications equipment makers.

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