Finnish telecommunications giant Nokia announced today that it plans to cut 14,000 jobs after a decline in third-quarter profits.
“In the third quarter, we saw an increasing impact of macroeconomic challenges on our business”company chairman Pekka Lundmark said in a statement.
After the results were published, Nokia’s share price fell 2% to 3.26 euros at around 06:00 GMT (07:00 in Lisbon).
The group posted a 69% drop in third-quarter profit to 133 million euros ($140 million) compared to the previous year.
Nokia has announced plans to reduce its current workforce of 86,000 to 72,000.
The group’s savings program is expected to deliver cost savings of up to EUR 1.2 billion by 2026, focusing mainly on mobile networks, but also on cloud and network services.
“The hardest decisions we have to make are the ones that affect our team”said Pekka Lundmark.
The telecommunications equipment manufacturer, embroiled in a battle over 5G networks with Swedish rival Ericsson and China’s Huawei, saw its third-quarter revenue fall 20% to 4.982 billion euros compared to 2022.
“We saw some slowdown in the pace of 5G deployment in India, meaning growth was no longer sufficient to offset the slowdown in North America”added the person in charge.
However, Nokia expects “an improvement” in its network business “in the fourth quarter”.
Source: DN
