Nokia publicizes mass layoffs: Telecom gear maker Nokia stated that it’s planning to cut up to 14,000 jobs worldwide, or 16% of its workforce, as half of a push to cut back prices following a plunge in third-quarter gross sales and revenue. The Finnish wi-fi and fixed-network tools supplier stated the deliberate measures are geared toward lowering its price base and growing operational effectivity “to navigate the current market uncertainty.”
The firm, on Thursday, stated it’s aiming to decrease its price base by between 800 million euros ($843 billion) and 1.2 billion euros by the tip of 2026. That was set to lead to a discount from 86,000 workers now to between 72,000 and 77,000 throughout that point interval.
Why Nokia is slashing its human capital?
Nokia’s third-quarter gross sales plummeted 20%, to 4.98 billion euros from 6.24 billion, in contrast with the identical three-month interval final yr. Comparable internet revenue plunged to 299 million euros from 551 million within the July-to-September quarter from a yr earlier.
The firm’s greatest unit by income — the cellular networks enterprise — declined 24% to 2.16 billion euros, pushed primarily by weak spot within the North American market. Operating revenue for the division fell 64%.
“We continue to believe in the mid-to-long-term attractiveness of our markets,” Nokia CEO Pekka Lundmark stated in a press release.
“Nokia isn’t “standing still but…”
“Cloud computing and AI revolutions will not materialize without significant investments in networks that have vastly improved capabilities.” While it’s unclear when the market will enhance, Nokia isn’t “standing still but taking decisive action on three levels: strategic, operational and cost,” Lundmark stated. “I believe these actions will make us stronger and deliver significant value for our shareholders.”
Nokia is one of the world’s primary suppliers of 5G, the newest technology of broadband know-how, together with Sweden’s Ericsson, China’s Huawei and South Korea’s Samsung. Earlier this yr, Ericsson stated it was slicing 8% of its world workforce because it seemed to cut back prices.
AP
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