Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Nokia to cut up to 14,000 jobs after sales drop a fifth

by Uma
0 comment
2023 10 19T055909Z 3 LYNXMPEJ9I05T RTROPTP 4 USA STOCKS

Nokia to cut up to 14,000 jobs after sales drop a fifth

By Supantha Mukherjee

STOCKHOLM (Reuters) -Finnish telecom gear group Nokia said on Thursday it would cut up to 14,000 jobs in a new cost reduction effort after third-quarter sales fell by a fifth, taken down by sales of next-generation 5G equipment.

Nokia and rival Ericsson have grappled with slowing demand for 5G equipment in countries such as the United States, trying to offset some of the weakness with higher sales to India, a low-margin market.

Nokia is targeting savings of between 800 million euros ($842 million) and 1.2 billion euros by 2026, the deadline by which it seeks to deliver a long-term comparable operating margin plan of at least 14%.

The programme is expected to lead to an organisation with 72,000 to 77,000 employees, down from 86,000 today, the company said in a statement.

“Nokia expects to act quickly on the programme, with at least 400 million euros of in-year savings in 2024, and a further 300 million euros in 2025.”

Ericsson, which has also laid off thousands of employees this year, said on Tuesday the uncertainty affecting its business would persist into 2024.

“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,” Chief Executive Pekka Lundmark said.

Quarterly comparable net sales fell to 4.98 billion euros from 6.24 billion last year, missing an estimate of 5.67 billion euros according to a LSEG poll.

Nokia will move to a leaner corporate center to boost strategic focus while protecting spending on research and development, and giving more operational autonomy to business units, it said.

“Resetting the cost base is a necessary step to adjust to market uncertainty and to secure our long-term profitability and competitiveness,” Lundmark said.

($1=0.9493 euros)

(Reporting by Supantha Mukherjee in Stockholm; Editing by Anna Ringstrom and Clarence Fernandez)