Archive…the logo of the Finnish company Nokia
Finnish telecommunications giant Nokia announced on 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 ($3.44) 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 amounted to about 5 billion euros in the third quarter of 2023.
The same official said: “We have witnessed some slowdown in the pace of deployment of 5G networks in India, which means that growth there is no longer sufficient to compensate for the slowdown in North America.”
However, Nokia expects an “improvement” in its network activities “in the fourth quarter.”
Corporate news
2023-10-19 11:03:54
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