Out of its entire 86,000 workers, Nokia will reduce its staff by 14,000 people

According to reports, Nokia, a Finnish producer of telecom equipment, would lose up to 14,000 jobs as part of a new cost-cutting plan. The firm saw a 20% decline in third-quarter revenues as a consequence of the slow adoption of 5G technology in countries like America.

Nokia is to cut expenses by between 800 million and 1.2 billion euros in order to reach its operating margin goal of at least 14% by 2026, according to a report.

The company now plans to reduce the workforce from Nokia’s existing 86,000 employees to 72,000–77,000 people.

Nokia’s performance fell short of projections. The business’ operating profit for the third quarter was $467 million. Compared to the experts’ expected 7 cents, the adjusted profits per share came in at 5 cents.

After the second quarter, Nokia revised its forecast for annual sales from 23.2 billion euros to 24.6 billion euros, with an associated operating margin of 11.5% to 13%. In the past, the maximum of such range was seen to be 14%.

As US and EU operators aim to cut capital expenditures and make inventory changes, manufacturers of 5G equipment are struggling.

Nokia plans to shift to a smaller corporate headquarters that will provide strategic direction and control, protect R&D budgets, and give its business segments more operational freedom.

In the meanwhile, the new Nokia logo was unveiled on Thursday in Barcelona before to GSMA 2023 and the Mobile World Congress (MWC).

As US and EU operators aim to cut capital expenditures and make inventory changes, manufacturers of 5G equipment are struggling. The shares of Ericsson AB, a Swedish rival, dropped to their lowest level in six years as a result of the company’s prediction that the market downturn will last through the fourth quarter and beyond. Ericsson AB is struggling to compete with US and European operators who are investing less in fifth-generation mobile infrastructure.