2023-10-19 10:17:01
Nokia headquarters, in Espoo, Finland, March 16, 2021. HEIKKI SAUKKOMAA / AP
Up to 14,000 jobs lost. This was announced on Thursday October 19 by the Finnish telecommunications equipment group Nokia, as part of a new cost reduction plan. The group highlighted a 69% drop in third-quarter profits to 133 million euros ($140 million) compared to the previous year. After the results were published, Nokia’s share price fell 2% to 3.26 euros.
The telecoms equipment manufacturer, engaged in a battle for 5G networks with its Swedish rival Ericsson and the Chinese Huawei, announced that it had seen its sales fall by 20% to 4.982 billion euros in the third quarter compared to 2022. “We saw some slowdown in the pace of 5G deployment in India, meaning that growth there was no longer sufficient to offset the slowdown in North America”, said Pekka Lundmark, CEO of Nokia. He also expressed his sadness about the massive job cuts, stressing that “ the most difficult decisions to make are those that impact our staff.”
The group’s savings program is expected to deliver cost reductions of up to €1.2 billion by 2026, notably targeting mobile networks, as well as cloud and network services. According to the general manager, “third quarter net sales were impacted by the current uncertainty” but it nevertheless provides “a more normal seasonal improvement in our network operations in the fourth quarter.”
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