Nokia has announced plans to lay off between 9,000 and 14,000 workers in a bid to improve cost efficiency.
The Finnish telecomms giant was once a household name and made some of the best business smartphones in the industry before Android and iOS really took off.
Now, though, it has committed to saving hundreds of millions in the upcoming years, even cutting personnel expenses by up to 15%.
More tech workers are at risk of losing their jobs
In July 2011, more than two in five phones sold worldwide were Nokia-made (via Statcounter). That figure has continued to drop month after month, year after year, to the point that the company now has a disappointing 0.39% market share.
Nokia says it “expects to act quickly,” which means it plans to save €400 million in 2024 and a further €300 million in 2025. Mobile Networks, Cloud and Network Services, and Nokia’s corporate functions are the three key business areas that look to be most affected by the cost-cutting program.
Company CEO Pekka Lundmark said: “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.”
The considerable 10-16% drop in headcount is a response to declining sales – Nokia just announced a 20% drop in sales between July and September.
Lundmark alludes to future investments in cloud computing and AI, stating that development in those areas would be key to the materialization of revolution and, thus, profitability.
The company announced that it would also be giving its four business groups some slack. Mobile Networks, IP and Fixed Networks, Cloud and Network Services, and Nokia Technologies, can expect greater operational autonomy, which is hoped to help them target customers more effectively and, ultimately, drive more revenue.
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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!