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Breaking! This communications giant laid off 14,000 workers in a big way!
Time:2023-10-13 15:00:44      Click:325


The latest news, according to foreign media reports, Nokia in order to cope with the performance decline and market weakness, announced a new round of layoff plan, will lay off 14,000 people!

It is learnt that Nokia announced its third quarter results on the 19th, with net sales of 4.98 billion euros in the third quarter, down 20% year-on-year.

At the same time, Nokia announced the adjustment of operating strategy, the goal is to the end of 2026 total cost base compared to 2023 to reduce 800 million to 1.2 billion euros, which means that personnel spending will be reduced by 10-15 per cent. Nokia currently employs 86,000 people and the plan is expected to bring Nokia's workforce down to 72,000-77,000.

Nokia and its rivals have been struggling to cope with slowing demand for 5G equipment in countries such as the US, and have tried to offset some of the weak demand by increasing sales in India, a low-margin market.

Nokia is targeting cost savings of between 800 million euros ($842 million) and 1.2 billion euros by 2026, when the company hopes to achieve its long-term comparable operating margin plan of at least 14 per cent.

The company said in a statement that the aforementioned cost-savings plan would reduce the company's workforce to 72,000-77,000 employees, down from 86,000 currently. "Nokia expects to act quickly to save at least €400 million by 2024 and a further €300 million by 2025."

Nokia CEO Pekka Lundmark said, "While our net sales in the third quarter were impacted by continued uncertainty, we expect a more normal seasonal improvement in our networks business in the fourth quarter."

According to the information, in the past two years alone, Nokia has laid off more than 11,000 employees, which is equivalent to one-tenth of its total workforce. Although layoffs are a very common phenomenon, but Nokia this large-scale, long-term layoffs, the main reason or still its 5G layout of the loss.

*Disclaimer: The news in this article originated from Nokia's official, China Semiconductor Forum, collated by YuanXinAi electronic, the news has not been officially confirmed, only for the purpose of communication and learning.

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