Nokia will downsize due to falling demand for 5G equipment and a slowdown in the telecom sector. According to emerging reports, the company plans to cut 14,000 jobs globally.
What’s happening with Nokia and 5G technology?
The Finland-based technology giant already has a workforce of 86 thousand people. However, it aims to reduce this figure to between 72 and 77 thousand by 2026. Thanks to the layoffs, Nokia wants to save up to 1 billion euros.
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 are ongoing, so he could not give details on layoffs on a unit-by-unit basis.
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The layoffs come at a time when Nokia’s third-quarter revenues fell around 20 percent compared to last year. The company, whose revenue fell to 4.98 billion euros, failed to meet analyst forecasts. Nokia stated that the decline in sales was due to demand for both 5G and the telecom world.
CEO Lundmark stated that major operator companies in the US have cut spending. He said that revenues from this market fell by 40 percent. Growth in other markets such as India has also slowed.
Lundmark thinks that telecom operators’ limited approach to 5G technology will continue in 2024. This will lead to the downsizing of telecom manufacturing companies such as Nokia and Ericsson.
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