Finnish telecommunications equipment group, Nokia, announced on Thursday that it plans to slash up to 14 000 jobs. This decision comes in the wake of a 20% drop in third-quarter sales due to slowing sales of 5G equipment in markets such as North America.

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New Cost-Savings Plan

In an effort to counteract these losses, Nokia is implementing a new cost-savings plan. The company aims to save between €800 million and €1.2 billion by 2026. This initiative is part of Nokia’s strategy to achieve its long-term comparable operating margin plan of at least 14% by 2026.

Nokia to slash up to 14 000 jobs

The cost-savings program is expected to reduce the number of employees in the organization from the current 86,000 to between 72,000 and 77,000, according to a statement released by the company.

Nokia plans to act swiftly on this program, with at least €400 million of savings expected in 2024 and an additional €300 million in 2025.

The company reported that comparable net sales fell to €4.98 billion from €6.24 billion last year, falling short of the estimated €5.67 billion according to a LSEG poll.

CEO’s Statement

Despite the impact on third-quarter net sales due to ongoing uncertainty, CEO Pekka Lundmark expressed optimism about the future. He anticipates a more normal seasonal improvement in Nokia’s network businesses in the fourth quarter.

By Shamiso Miracle

Shamiso Miracle completed her degree in journalism and media studies at the University of Zimbabwe before honing her skills at Savanna News. She then went on to work at iHarare News, becoming a voice for everyday SA citizens who wanted to share their stories. When she's not writing news that entertains and inspires ,Shamiso is an avid reader and a wellness bunny.

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