Finnish telecommunications equipment group Nokia has said that it will cut up to 14 000 jobs as part of a new cost-savings plan after third-quarter sales dropped 20% due to slowing sales of 5G equipment in markets such as North America.
The company is targeting between €800-million and €1.2-billion in cost savings by 2026 as it seeks to be on track to deliver its long-term comparable operating margin plan of at least 14% by 2026.
The programme is expected to lead to a 72 000- to 77 000-employee organisation compared to the 86 000 employees Nokia has today, the company said in a statement.
Nokia expects to act quickly on the programme with at least €400-million of in-year savings in 2024
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“Nokia expects to act quickly on the programme with at least €400-million of in-year savings in 2024 and a further €300-million in 2025,” the company said.
Comparable net sales fell to €4.98-billion from €6.24-billion last year, missing the estimated €5.67-billion, according to a LSEG poll.
“While our third quarter net sales were impacted by the ongoing uncertainty, we expect to see a more normal seasonal improvement in our network businesses in the fourth quarter,” CEO Pekka Lundmark said.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry