Towards the end of the previous year, the impact of the slowing economy became evident, leading to numerous companies announcing substantial layoffs due to underperformance or inaccurate predictions made during the pandemic.
Read: Elgato has launched a teleprompter made for streaming
Recently, several organizations, including Nokia, have initiated layoffs, signalling a potential downturn in business sentiment. Nokia disclosed its plan to release approximately 14,000 employees in the coming weeks, emphasizing the need to reduce costs and enhance operational efficiency to address the challenging market conditions.
Nokia has set an ambitious target to reduce its cost base by €800 million to €1.2 billion by the end of 2026, and the aforementioned job cuts will result in a reduction of its workforce by around 16 percent. Consequently, its current workforce of 86,000 will shrink to a range of 77,000 to 72,000.
The decision to implement job cuts arises from Nokia’s third-quarter financial results, which reported a 20 percent year-on-year decrease in net sales to €4.98 billion, accompanied by a more significant 69 percent decline in profits during the same period.
The ongoing global economic downturn has prompted key mobile operators and networks to reduce their expenditures, with Nokia highlighting a substantial slowdown in 5G deployments in North America and India compared to the previous year.
This announcement from Nokia is particularly surprising, considering the company’s recent rebranding efforts and its intent to diversify within the telecommunications sector.
