Nokia said Thursday it plans to lay off as many as 14,000 workers by 2026 after 3rd quarter profits plunged 69% year-on-year. CEO Pekka Lundmark said the company will “support everyone that is affected by this process.” Photo courtesy of Nokia
Nokia Thursday announced it would lay off as many as 14,000 workers by 2026 as its third quarter profits dropped by 69% year-on-year to $140.44 million.
Nokia currently employs 86,000 people. By 2026 employees will number between 72,000-77,000. Advertisement
“The most difficult business decisions to make are the ones that impact our people,” Nokia President and CEO Pekka Lundmark said in a statement. “We have immensely talented employees at Nokia and we will support everyone that is affected by this process. Resetting the cost base is a necessary step to adjust to market uncertainty and to secure our long-term profitability and competitiveness. We remain confident about opportunities ahead of us.”
Nokia reported profit in the third quarter of 2023 was $451.95 million. The company seeks to cut costs by $844.76 million to $1.2 billion by 2026.
Lundmark said he believes these moves will make Nokia stronger and deliver significant value to shareholders.
Nokia said in a statement that the layoffs and other moves are “strategic and operational changes to its business and a program to reset its cost base.”
Nokia added that these actions will better position the company for longer-term growth while enabling it to navigate current market uncertainty. Advertisement
Personnel expenses at Nokia will be cut by 10% to 15% and the company expects to act quickly with at least $422.3 million in personnel cuts in 2024 and another $316.7 million reduction in payroll reductions in 2025.
In addition to the layoffs, Nokia said, “To address the market environment Nokia will reduce its cost base and increase operational efficiency while protecting its R&D capacity and commitment to technology leadership.”
