Nokia is to slash up to 14,000 jobs by 2026 to reduce cost base by up to €1.2bn million and increase operational efficiency
The company has however committed to protecting its research and development capacity and its commitment to” technology leadership”.
The news of staff cuts comes as Nokia announced a Q3 net sales decrease of 20 per cent and a 15 per cent year-on-year decline across all business groups, particularly mobile networks and network infrastructure.
“Network Infrastructure declined 14 per cent as it continued to experience short-term challenges which are largely related to macroeconomic uncertainty. Nokia Technologies net sales were down 14 per cent while Cloud and Network Services showed resilient performance with net sales decreasing two per cent”, said the company.
Reported Q3 net profit was €133 million, compared to €428 million in Q3 2022. Comparable net profit in Q3 last year was €299 million, compared to €551 million in Q3 2022. The decline in comparable net profit was mainly due to unfavourable foreign exchange fluctuations
“We continue to believe in the mid to long-term attractiveness of our markets. Cloud Computing and AI revolutions will not materialize without significant investments in networks that have vastly improved capabilities. However, given the uncertain timing of the market recovery, we are now taking decisive action on three levels: strategic, operational and cost. I believe these actions will make us stronger and deliver significant value for our shareholders” said Nokia president and CEO Peka Lundmark.
Mobile network infrastructure ure sales were down 19 per cent mainly in North America, where its customers “continued to prioritise cash flow and deplete their inventories.
Nokia Q3 VIDEO HERE
FULL BREAKDOWN HERE