Nokia is downsizing its operations in China. The company has decided to lay off almost 2,000 employees. The company is implementing the cost-cutting plan it has put into practice worldwide. As you know, things have not been very bright in the telecommunications sector recently. Nokia is one of the companies that feel the effects of this recession the most. So, what led to this decision?
Nokia is laying off 2,000 people in China: Market share drops to 5%
In the large-scale layoff plan announced last year, the goal was to part ways with a total of 14,000 employees. According to Nokia’s 2023 reports, it had 10,400 employees in China. However, Nokia’s market share in China has fallen below 5% due to the slowdown of telecom infrastructure projects in China and the difficulty of competing with strong local competitors such as Huawei and ZTE.
The company is not commenting much on the current layoffs. But what is known is that the company has shut down some of its operations in China and divested its stake in a joint venture in China. And it’s not just China, things are not going well in Europe either. This week it announced that it will lay off 350 people in Europe as well.
The company has laid off 7,500 employees worldwide so far. In this process, it plans to save 500 million euros. However, it should be said that not everything is that easy; because Nokia’s third quarter sales are below expectations and the recovery process is progressing slower than expected.
In short, it remains to be seen how much more Nokia will downsize both in China and Europe. What do you think about this? You can write your opinions in the comments section below.
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