🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Nokia announces major job cuts as 5G business slumps

EditorPollock Mondal
Published 10/19/2023, 08:13 AM
© Reuters.  Nokia (NOK) announces major job cuts as 5G business slumps
NOKIA
-
NOK
-

Nokia (HE:NOKIA) (NYSE:NOK) today announced a major cost-cutting effort with a plan to cut as many as 14,000 jobs, or nearly 16% of it staff, as the company is battling a slump in its 5G business.

In a move that should save ~€400 million (€1 = $1.05) in 2024, and an additional €300 million in 2025, the communications giant intends to bring the headcount down to 72,000-77,000 people from the 86,000 it is employing currently.

Management did not provide specific details on who would be affected by the job cuts, but Nokia's CEO Pekka Lundmark did note that the company's focus is on protecting the Research & Development department.

Earlier today, Nokia reported Q3 results, missing on both top and bottom lines, with comparable sales drop 20%, and North American sales down 40%.

Lundmark noted that despite strong growth in India, the advancements there are "no[t] anymore able to compensate fully for what we are losing in North America" - the company's key and most profitable market.

Nokia's key competitor from Sweden, Ericsson (ST:ERICb), also posted weak results earlier this week, saying it expects the weakness to continue in the near term.

Shares of NOK are trading nearly 4% lower following the announcement.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.