Equipment manufacturer Nokia announces major job cuts
Nokia's Finnish headquarters (illustrative image).
Lehtikuva / AFP
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Telecommunications equipment maker Nokia announces a plan to save money, with the elimination of 5,000 to 10,000 jobs over the next two years.
The Finnish operator is pursuing its strategy of business transformation in order to stay in the race against its competitors Ericsson and Huawei.
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With this announcement, Nokia confirms its ambition to carry out a major restructuring.
The group announces the elimination of 5,000 jobs within the next two years and does not refrain from doubling the figure if necessary, ie up to 11% of its workforce.
The Finn, who employs 90,000 people worldwide, wants to reduce his payroll to around 80,000 jobs by 2023.
France already affected
Without revealing the countries concerned, the management of the group specifies that France is excluded because it is already affected by a restructuring plan which cuts 1,000 jobs.
These workforce reductions will allow Nokia to reduce costs and increase its investments in research and development, especially in 5G, which its CEO, Pekka Lundmark, has made the top priority of his company.
195 5G contracts
Number three in the world for fifth-generation networks, the Finnish equipment manufacturer is struggling to keep up with its two main competitors: the Swedish Ericsson and the Chinese Huawei.
With the latter two, they share most of the market for fifth generation networks.
Currently, Nokia has signed 195 contracts with operators for 5G equipment, notably in the United Arab Emirates.
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