Nokia will shrink due to the decline in demand for 5G equipment and the slowdown in the telecom sector. According to the resulting reports, the company has a global to lay off 14 thousand people is planning.
Nokia will lay off 14 thousand people in two years
The Finland-based technology giant currently has a workforce of 86 thousand people. However, it aims to reduce this figure to between 72 and 77 thousand by 2026. Thanks to layoffs, Nokia Savings of up to 1 billion euros He wants to do it.
Nokia CEO Pekka Lundmark stated that at least 400 million euros will be saved next year and 300 million euros in 2025. However, he said that negotiations with employee representatives were continuing, so he could not give details about the layoffs on a unit basis.
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The layoffs come at a time when Nokia’s third-quarter revenues fell by around 20 percent compared to last year. Revenue reached 4.98 billion euros The declining company failed to meet analyst forecasts. Nokia, on the other hand, stated that the decrease in sales was due to the demand for both 5G and the telecom world.
CEO Lundmark stated that major operator companies in the USA have cut spending. He said that revenues from this market dropped by 40 percent. Growth in other markets, such as India, has also slowed.
Lundmark, telecom operators to 5G technology He thinks that his limited approach to this issue will continue in 2024. This will lead to the downsizing of telecom manufacturers such as Nokia and Ericsson.
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