Nokia to cut up to 14,000 jobs as it announces 1.2bn euro cost savings

19 October 2023 , 09:21

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The Finnish firm has UK offices in Bristol, Cambridge and Reading (Image: Nokia)

Nokia, the telecoms giant, has announced plans to cut up to 14,000 jobs by the end of 2026 as part of a cost-cutting plan.

The Finnish tech firm aims to save up to 1.2 billion euros (£1.04 billion) over three years, reducing its workforce from 86,000 to between 72,000 and 77,000.

The company, which has UK offices in Bristol, Cambridge and Reading, hasn't revealed where the job cuts will be made. This news comes as Nokia reported a 20% drop in sales for the quarter ending in September.

Despite hopes that the recent introduction of 5G networks would boost trading, Nokia blamed a slowdown in demand for the technology in some markets, like North America. This follows a similar sales slump last week by Swedish rival Ericsson, which is also undergoing restructuring.

Nokia's president and chief executive, Pekka Lundmark, said: "The most difficult business decisions to make are the ones that impact our people." He added, "We have immensely talented employees at Nokia and we will support everyone that is affected by this process."

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Lundmark concluded by saying, "Resetting the cost base is a necessary step to adjust to market uncertainty and to secure our long-term profitability and competitiveness."

"We remain confident about opportunities ahead of us."

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Steve Charnock