HELSINKI (AP) — Telecom gear maker Nokia stated Thursday that it’s planning to chop as much as 14,000 jobs worldwide, or 16% of its workforce, as a part of a push to scale 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 aimed toward lowering its price base and growing operational effectivity “to navigate the present market uncertainty.”
The corporate 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 result in a discount from 86,000 staff now to between 72,000 and 77,000 throughout that point interval.
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 web revenue plunged to 299 million euros from 551 million within the July-to-September quarter from a yr earlier.
The corporate’s greatest unit by income — the cell networks enterprise — declined 24% to 2.16 billion euros, pushed primarily by weak spot within the North American market. Working revenue for the division fell 64%.
“We proceed to consider within the mid- to long-term attractiveness of our markets,” Nokia CEO Pekka Lundmark stated in a press release. “Cloud computing and AI revolutions is not going to materialize with out important investments in networks which have vastly improved capabilities.”
Whereas it is unclear when the market will enhance, Nokia isn’t “standing nonetheless however taking decisive motion on three ranges: strategic, operational and value,” Lundmark stated. “I consider these actions will make us stronger and ship important worth for our shareholders.”
Nokia is among the world’s most important suppliers of 5G, the most recent technology of broadband expertise, together with Sweden’s Ericsson, China’s Huawei and South Korea’s Samsung.
Earlier this yr, Ericsson stated it was cutting 8% of its global workforce because it regarded to scale back prices.
