Nokia Jobcut News: Mobile Phone Giant To Cut Up To 14,000 Jobs As Demand For 5G Equipment Weakens

Job cut news has become regular stuff these days with more and more companies joining the list to announce layoffs and job cuts. Nokia, Finnish telecom gear group said on Thursday that it will cut up to 14,000 jobs to reduce costs after weaker demand for next-generation 5G equipment reduced third-quarter sales by a fifth. The mobile phone giant added that it did not expect a market recovery soon.

Nokia's cost-cutting plan comes in response to a significant 20% slump in third-quarter sales attributed to sluggish 5G equipment sales. This decision comes as Nokia grapples with challenges in crucial markets like North America.

The company is eyeing between 800 million euros and 1.2 billion euros in cost savings by 2026 as it seeks to achieve its long-term target of an operating margin plan of at least 14% by 2026.

Compared to the previous year, the third quarter saw a significant drop in net sales, down from 6.24 billion euros to 4.98 billion euros.

This initiative is anticipated to reduce the company's employee base from its current 86,000 employees to a more streamlined 72,000-77,000 workforce.

In its interim report for Q3 2023 shares today, the company said its Q3 net sales declined 15% y-o-y in constant currency (-20% reported) as macroeconomic uncertainty and higher interest rates continue to pressure operator spending.