Nokia To Slash 10,000 Jobs In Cut-Throat Restructuring
Mobile giant Nokia is planning to cut up to 10,000 jobs over the next two years as part of its cost-cutting corporate restructure.
The mass layoffs will help free up funds for Nokia’s investments in 5G development and other projects, the Finish company said.
Nokia currently employs around 90,000 people and expects to have 80,000 to 85,000 as it cuts jobs over the next 18 to 24 months.
The exact number of layoffs will depend on ‘market developments,’ Nokia said.
“Nokia now has four fully accountable business groups. Each of them has identified a clear path to sustainable, profitable growth and they are resetting their cost bases to invest in their future,” said Pekka Lundmark, President and CEO.
“Each business group will aim for technology leadership. In those areas where we choose to compete, we will play to win. We are therefore enhancing product quality and cost competitiveness, and investing in the right skills and capabilities.”
Nokia said it hopes to lower cost base of approximately EUR600 million by the end of 2023.
Around 50 per cent of the restructuring is expected to occur in 2021, 15 per cent in 2022 and 35 per cent in 2023.
“Decisions that may have a potential impact on our employees are never taken lightly. Ensuring we have the right setup and capabilities is a necessary step to deliver sustainable long-term performance. My priority is to ensure that everyone impacted is supported through this process,” Lundmark added.