Nokia has announced layoffs affecting nearly 2,000 employees in Greater China, representing about 20% of its workforce in the region, along with plans to cut an additional 350 jobs across Europe as part of a cost-reduction strategy, according to sources familiar with the situation.
A spokesperson for Nokia confirmed that consultations have begun regarding the layoffs in Europe, but declined to provide details about the cuts in Greater China.
As of December 2023, Nokia employed 10,400 people in Greater China and 37,400 in Europe. The company previously outlined plans to eliminate up to 14,000 jobs to reduce costs, aiming to save between €800 million ($868 million) and €1.2 billion by 2026. The recent layoffs are part of this broader initiative.
On Thursday, Nokia reported a 9% increase in third-quarter operating profit, primarily driven by cost-cutting measures. However, its net sales fell short of expectations, leading to a 4% drop in its stock price. The company has already realized €500 million in gross savings, according to the spokesperson.
CEO Pekka Lundmark emphasized that the cost-cutting efforts will not compromise research and development output. “I am satisfied with the pace of cost reduction, and we are slightly ahead of our planned schedule,” he stated during a call with reporters. When the layoffs were initially announced, Nokia had approximately 86,000 employees and aimed to reduce its workforce to between 72,000 and 77,000 by 2026. Currently, the company has just over 78,500 employees.
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