According to Reuters, Finnish multinational telecommunications, information technology, and consumer electronics corporation, Nokia is planning to slash 14,000 jobs to save costs. The layoffs are about 16% job cuts at the high end.
The report also stated that Nokia expects to reduce its employee base to between 72,000 and 77,000 employees, from 86,000.
The Q3 net sales declined 15% y-o-y in constant currency (-20% reported) as macroeconomic uncertainty and higher interest rates continue to pressure operator spending.
Chief Executive and President, Pekka Lundmark on Q32023 Results said, “Our third quarter performance demonstrated resilience in our operating margin despite the impact of the weaker environment on our net sales. In the last three years, we have invested heavily to strengthen our technology leadership across the business giving us a firm foundation to weather this period of market weakness.”
“We continue to believe in the mid to long-term attractiveness of our markets. Cloud Computing and AI revolutions will not materialize without significant investments in networks that have vastly improved capabilities”, Pekka Lundmark said.
“However, given the uncertain timing of the market recovery, we are now taking decisive action on three levels: strategic, operational, and cost. I believe these actions will make us stronger and deliver significant value for our shareholders”, Pekka added.
Pekka Lundmark further said, “First, we are accelerating our strategy execution by giving business groups more operational autonomy. Second, we are streamlining our operating model by embedding sales teams into the business groups and third, we are resetting our cost base to protect profitability.”
“We target between EUR 800 million and EUR 1,200 million in cost savings by 2026. These actions keep us on track to deliver our long-term target comparable operating margin of at least 14% by 2026”, Pekka Lundmark added.
So far in 2023, there have been 1,698 layoffs at tech companies with 370,610 people impacted (1,269 people per day). In 2022, there were 1,557 layoffs at tech companies with 243,318 people impacted (667 people per day).
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