Up to 10,000 jobs could be cut by Nokia as part of restructuring plans to focus on 5G investment instead.
It comes as part of the telco’s plans to reset its cost base, as Nokia instead looks to invest in future capabilities such as 5G, cloud and digital infrastructure.
The scaling down of the workforce is expected to save Nokia between €600 to €700 million by 2023.
Currently Nokia has close to 90,000 employees, but this is expected to be cut to between 80,000 to 85,000 in the next 18 to 24 months.
The new model will improve cost-efficiency and help position the company for changing markets and align with customer needs says Nokia’s CEO and president Pekka Lundmark.
He said: “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.
“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.”