Layoffs in Nokia: Nokia has laid off about 2000 people. These layoffs have been done in Greater China and are about one fifth of the company’s total employees. A Reuters report quoted sources as saying that Nokia is planning to lay off 350 more people across Europe.
This is being done as part of efforts to reduce costs. Nokia last year planned to cut 14,000 jobs to reduce costs and save between 800 million euros and 1.2 billion euros by 2026. These layoffs are part of that plan.
According to Reuters, a Nokia spokesperson confirmed that the company has begun consultations regarding the layoff of 350 employees in Europe. But declined to comment on the layoffs in Greater China. According to the company’s annual report, as of December 2023, Nokia had 10,400 employees in Greater China and 37,400 in Europe.
Nokia currently has 78,500 employees
When Nokia announced the job cuts last year, its total employees were around 86,000. The company plans to reduce its workforce to between 72,000 and 77,000 by 2026. Nokia currently has a little over 78,500 employees, the spokesperson said.
China was once the second largest market
China was once Nokia’s second-largest market. But contracts from Chinese telecom operators for both Nokia and Ericsson declined after Western countries banned Huawei from 2019. About 27% of Nokia’s net sales came from Greater China in 2019, while the contribution was less than 6% in the latest quarter.
Operating profit increased by 9% in the September quarter
Nokia’s operating profit grew 9 percent in the July-September 2024 quarter, largely due to cost cuts. But the company’s net sales were lower than estimates, causing its shares to fall 4%. According to Reuters, the spokesperson said the company has already made gross savings of 500 million euros. Nokia CEO Pekka Lundmark has said, “We are not cutting costs in such a way that we have to give up R&D output. I am happy with the pace of cost reduction. We are slightly ahead of our schedule.”
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