Nokia to Cut Thousands of Jobs Amidst Slump in Sales
In a bid to reduce costs and enhance profitability, Finnish tech giant Nokia is set to cut between 9,000 and 14,000 jobs by the end of 2026 following a 20% drop in sales between July and September. The company attributes this decline to reduced demand for 5G equipment.
The job cuts will be implemented gradually, with the aim of slashing costs by between £695 million and £1 billion (between €800 million and €1.2 billion) by 2026. While Nokia has not disclosed which locations will see job cuts, it has emphasised the necessity of this decision to adapt to market uncertainty and safeguard long-term profitability and competitiveness. A spokesperson stated, "We have immensely talented people at Nokia, and we will support everyone that is affected by the process."
Nokia shifted its focus to telecoms equipment after facing tough competition from touchscreen phones like Apple's iPhone and became the largest equipment provider to BTin 2020. However, 5G equipment makers have faced challenges as US and EU operators reduce spending.
The tech industry, including telecoms, has been grappling with challenges caused by inflation and higher interest rates. This economic backdrop has resulted in job cuts in numerous technology companies, including Meta, Amazon, and X (formerly Twitter). Nevertheless, tech workers remain in demand, with a significant portion of those who lost their jobs finding new opportunities within three months.
