Nokia to cut up to 10,000 jobs worldwide

The global telecommunications behemoth currently employs 90,000 people and has cut thousands of jobs since 2015.
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Nokia

Nokia, a telecommunications firm, has announced plans to slash 5,000 to 10,000 jobs globally over the next two years.

According to the company, the move would enable it to cut costs, catch up on 5G, and invest in cloud computing and digital infrastructure research.

Nokia said on Tuesday that the reorganization is aimed at improving its success against competitors such as Ericsson of Sweden and Huawei of China.

According to the BBC, the company did not specify which regions will be impacted by the measure, however it did state that 96 jobs in the UK will be lost as a consequence of the €600 million (£518 million) cost cuts.

A Nokia spokesperson was quoted as saying,

“We currently expect the consultation process in the UK to cover an estimated 96 roles.”

“At this stage, however, these are only estimates. It is too early to comment in detail, as we have only just informed local works councils and expect the consultation processes to start shortly, where applicable,”
the spokesperson said.

Around 300 jobs are expected to be lost in Finland, according to a union leader, especially from the company's Helsinki headquarters.

Nokia did not participate in the latest reorganization in France, where it eliminated over 1,000 jobs last year.

The chief executive Pekka Lundmark was quoted as saying,
“decisions that may have a potential impact on our employees are never taken lightly. My priority is to ensure that everyone that will be hit is supported through this process.”

After product missteps under the company's previous management harmed Nokia's 5G aspirations and dragged on its shares, Lundmark, who took over Nokia's top spot in 2020, has made improvements.

The mobile corporation employs 90,000 people worldwide and has laid off thousands of people since 2015.

It was once the world's largest phone maker, but it failed to foresee the rise of internet-enabled touchscreen phones like Apple's iPhone and Samsung's Galaxy, and was spectacularly knocked off its perch by competitors.

The company shifted its focus to telecoms equipment after selling its phone business to Microsoft, which the software giant later wrote off.

Later, a licensing deal for Nokia-branded phones was reached.

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