Nokia to cut up to 10,000 jobs over next two years

Finnish telecoms group is aiming to save up to €600m by the end of 2023

Photograph: iStock

Photograph: iStock

 

Finnish telecoms group Nokia said on Tuesday it plans to cut between 5,000 and 10,000 jobs within the next two years to trim costs and invest more in research capabilities.

A small number of jobs are under threat in Ireland, with Nokia indicating about seven roles are part of the consultation process, while about 100 roles could go in the United Kingdom. Its Nokia Ireland unit employed 150 people as of 2018, according to its last set of accounts on file with the Companies Office.

The company said in a statement it expects about €600 million to €700 million of restructuring and associated charges by 2023.

The group said the cuts would take the current 90,000 global workforce to between 80,000 and 85,000 over an 18- to 24-month period, with the final total dependent on market developments over the next two years.

“These plans are global and likely to affect most countries. It is too early to comment in detail, as we have only just informed local works councils and expect the consultation processes to start shortly, where applicable,” a Nokia spokesperson said.

In Finland, 300 jobs are expected to go, mainly at Nokia headquarters, a Finnish union representative told Reuters. France is excluded due to previously announced planned restructuring.

Long-term performance

“Decisions that may have a potential impact on our employees are never taken lightly. Ensuring we have the right setup and capabilities is a necessary step to deliver sustainable long-term performance. My priority is to ensure that everyone impacted is supported through this process,” said Nokia chief executive Pekka Lundmark in a statement.

Nokia expects the restructuring to lower its cost base by about €600 million by the end of 2023. Half of the savings are expected to be realised in 2021.

These savings will offset increased investments in research and development and future capabilities and costs related to salary inflation, the company said.

Among its targets for future investment are 5G, cloud and digital infrastructure.

“Nokia now has four fully accountable business groups. Each of them has identified a clear path to sustainable, profitable growth and they are resetting their cost bases to invest in their future,” said Mr Lundmark. “Each business group will aim for technology leadership. In those areas where we choose to compete, we will play to win. We are therefore enhancing product quality and cost competitiveness, and investing in the right skills and capabilities.”

– Additional reporting: Reuters