Nokia lays off 14,000 employees, and announces major cost-cutting drive

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In an unexpected turn of events, Finnish telecom heavyweight, Nokia, revealed its intentions to cut as many as 14,000 jobs as a part of a broad restructuring move. The announcement, made on Thursday, has been linked to efforts to navigate a “weaker” market scenario.

Currently employing 86,000 individuals and recognized as a major supplier of 5G equipment worldwide, this dramatic downsizing will see Nokia’s workforce reduced to a range of 72,000 to 77,000. The drastic measures taken by the company aim to alleviate staffing expenses by a significant 10% to 15%. Based on projections by the company, this move will lead to savings of at least €400 million ($421.4 million) in the year 2024 alone.

The bigger picture reveals even more significant savings for Nokia. By the conclusion of 2026, the company anticipates the cumulative cost reductions to amount to up to €1.2 billion (around $1.3 billion).

Nokia’s stock symbol, NOK, might be seeing increased attention from investors and analysts in the days to come, as the company has voiced its intention to “act quickly” with these changes.

CEO Pekka Lundmark commented on the difficult decision, emphasizing its impact on Nokia’s workforce. “The most challenging business decisions to make are the ones that impact our people,” he said. Lundmark assured that despite the hard choices, the company is committed to supporting every employee affected by the restructuring.

This restructuring reflects the challenges and evolving landscape in the telecom industry, and all eyes will now be on Nokia to see how they navigate this transformation.

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