The Finnish telecommunications giant Nokia plans to cut its workforce by 14,000 jobs after its third-quarter profits fell. “In the third quarter, we saw a greater impact of macroeconomic challenges on our business,” the CEO said Pekka Lundmark it’s a statement.
After the results were published, Nokia’s share price fell by 2% to €3.26 around 06:00 GMT. The group posted a 69% drop in third-quarter profits to 133 million euros ($140 million) compared to a year earlier.
Nokia has announced plans to reduce the current number from 86,000 to 72,000. The group’s savings program is expected to generate cost reductions of up to 1.2 billion euros by 2026, with a particular focus on mobile networks, as well as network and cloud services.
“The most difficult decisions to make are those that affect our staff,” said Pekka Lundmark.
The telecommunications equipment manufacturer, immersed in a battle for 5G networks with its Swedish rival Ericsson and the chinese Huaweisaw its sales fall by 20%, to 4,982 million euros, in the third quarter compared to 2022.