Nokia announces plan of 5,000 to 10,000 job cuts in two years

Nokia Announces Plan Of 5,000 To 10,000 Job Cuts In

The exact number of jobs targeted by the restructuring of the group will be decided according to the evolution of the market. In France, Nokia will not increase its plan to cut a thousand jobs.

The Finnish equipment manufacturer continues to cut in its workforce. After the announcement last year, it is the group’s global workforce that is under pressure. Between 5,000 and 10,000 jobs will be eliminated by 2023, out of the 90,000 that the equipment manufacturer has.

By 2023, the group will have “between 80,000 and 85,000 salariesés ”, says Nokia. The exact number “will depend on market developments over the next two years“. The group wants to reduce its costs from 600 to 700 million euros. This plan should concern most of the countries in which the group operates, with the exception of France. France would not be affected by these new clear cuts. “Decisions that have a potential impact on our employees are never taken lightly. Making sure we have the right setup and the right capabilities is a necessary step in delivering long term sustainable performance.“Pleaded Pekka Lundmark, CEO of Nokia.

Accelerate on 5G

At the same time, Nokia plans to increase its investments in Research and Development, which would offset the structural savings made. The Finn wants to work harder, especially in 5G. But he is also a collateral victim of the tensions between the United States and China. Since Huawei’s ban from the Chinese market and access restrictions to certain European countries – including France – Nokia has not won a contract for 5G in China. Unlike Swedish Ericsson.

Nokia also announced that it is now organized into four divisions. This reorganization aims to “reduce investments in declining portfolio activities and redundant activities“. With a market capitalization barely exceeding 20 billion euros, Nokia is seen as a potential buyout target, despite many denials.

For analyst Mikaël Rautanen, of the Inderes firm, this restructuring is above all “a very strong statement that Nokia will remain independent“. The group must detail its strategy on Thursday.