Nokia announces another workforce cut affecting up to 10,000 employees

Mar 17, 2021 · 1 min read
Nokia announces another workforce cut affecting up to 10,000 employees
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Nokia has just announced a new restructuring plan to save production costs that includes the dismissal of up to 10,000 workers by 2023.

This staff cut, which will affect 11 percent of its current workforce, is part of this restructuring plan that aims to save around 600 million euros by the end of 2023. Its intention is to fund increased spending on research and development within the company, especially in relation to 5G technology, cloud computing and digital infrastructure.

Since the arrival of the new CEO, Pekka Lundmark, at Nokia last year, the company is working on improving profitability and has already presented a plan to be able to simplify its organizational structure.

As Reuters explains, Nokia will have four business groups within that strategy, and Lundmark has assured that the company will do whatever it takes to take the lead in 5G.

Lundmark said in a statement reported by the news agency that “decisions that may have a potential impact on our employees are never taken lightly”, promising that those affected “will be supported during the project”.

Nokia currently has 90,000 employees, and has already gone through this downsizing process in the past, especially since the acquisition of Alcatel-Lucent in 2016.

France, where Nokia cut more than 1,000 jobs last year, has been excluded from the new restructuring.

In February, Nokia forecast 2021 revenues to fall between €20.6 billion and €21.8 billion.