Nokia to cut 2,000 jobs in Greater China and 350 in Europe – Dimsum Daily

17th October 2024 – (Beijing) Nokia, a telecommunications giant, is set to lay off nearly 2,000 employees, amounting to approximately a fifth of its staff in Greater China. Additionally, the company plans to slash 350 jobs across Europe in a bid to streamline operations and reduce expenses, as revealed by sources familiar with the situation.

While a Nokia spokesperson verified that consultations have commenced regarding the termination of 350 roles in Europe, the company refrained from commenting on the situation in Greater China.

As of December 2023, Nokia boasted a workforce of 10,400 in Greater China and 37,400 across Europe. Last year, the corporation unveiled intentions to axe up to 14,000 positions to drive cost efficiencies, targeting savings ranging from 800 million euros ($868.08 million) to 1.2 billion euros by 2026.

The latest round of job cuts aligns with this overarching strategy, according to the insider sources.

Despite recording a 9% surge in third-quarter operating profit primarily attributed to cost reductions, Nokia faced a setback as its net sales fell short of expectations, causing a 4% dip in its share value.

Nokia’s spokesperson highlighted that the company has already achieved 500 million euros in gross savings. CEO Pekka Lundmark emphasised that cost-cutting measures would not compromise research and development efforts, affirming, “We are not doing cost-cutting in such a way that we would sacrifice our R&D output.” Lundmark expressed satisfaction with the pace of cost reduction, noting that Nokia is progressing ahead of schedule.

At the time of the initial job reduction announcement, Nokia employed approximately 86,000 individuals and aimed to trim its workforce to between 72,000 and 77,000 employees by 2026. Presently, the company’s headcount stands slightly above 78,500.