Finnish telecom company Nokia announced on Thursday, 19 October 2023 that it will cut up to 14,000 jobs to reduce costs as demands in some countries such as the United States dropped.
The company expects to reduce its employee base to between 72,000 and 77,000 employees, from 86,000, or about 16% job cuts at the high end.
“The market situation is really challenging and it is witnessed by the fact that in our most important market, which is the North American market, our net sales are down 40% in Q3,” Chief Executive Pekka Lundmark told Reuters in an interview.
By 2024, Nokia revealed that it expects at least 400 million euros and a further 300 million euros in 2025.
It is also targeting savings of between 800 million euros ($842 million) and 1.2 billion euros by 2026, its deadline to deliver a long-term comparable operating margin plan of at least 14%.
“We simply don’t know when it [the market] will recover,” said Lundmark, therefore Nokia has to take swift action.