Finnish telecommunications giant Nokia announced Thursday that it intends to reduce its workforce by 14,000 jobs after a decline in its profits in the third quarter of this year.
“In the third quarter, we saw an increasing impact of macroeconomic challenges on our business,” CEO Pekka Lundmark said in a statement.
After the results were published, Nokia’s share price fell by 2 percent to 3.26 euros at around 6 p.m. GMT.
The group recorded a 69 percent decline in third-quarter profits, which amounted to 133 million euros ($140 million), compared to the previous year.
Nokia announced plans to reduce the current number of employees from 86,000 to 72,000.
The group’s special savings program is supposed to achieve a cost reduction of 1.2 billion euros by 2026, targeting in particular mobile networks, cloud services and networks.
“The hardest decisions to make are those that affect our employees,” Pekka Lundmark said.
The communications equipment producer, which is locked in a battle over fifth-generation networks with its Swedish competitor Ericsson and the Chinese company Huawei, saw its sales decline by 20 percent in the third quarter compared to 2022 numbers.
The value of sales reached 4,982 billion euros in the third quarter of 2023.
The same official said, “We have seen some slowdown in the pace of 5G network deployment in India, which means that growth there is no longer sufficient to offset the slowdown in North America.”
However, Nokia expects an “improvement” in its network activities “in the fourth quarter.”
2023-10-19 15:26:00
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