Nokia announces job cuts, to lay off more than 2,000 employees

Nokia

Finland-based tech company Nokia has announced significant job cuts. According to a report by Reuters, Nokia is eliminating nearly 2,000 positions in Greater China. Furthermore, the company is also looking to cut an additional 350 jobs in Europe as part of its cost-cutting measures. The report quotes a Nokia spokesperson who confirmed the job cuts in Europe but didn’t mention anything about the ones in China.

The company’s annual report revealed that Nokia had 10,400 employees in Great China whereas the number in Europe was close to 37,400. The decision is line with Nokia’s plans to cut up 14,000 jobs, which was announced in 2023. Nokia had said that it was looking to save Last year, Nokia outlined plans to cut up to 14,000 jobs, hoping to save between 800 million euros ($868 million) and 1.2 billion euros by 2026.

China had been one of the key markets for Nokia. However, with the US banning Chinese companies like Huawei, ZTE, Chinese companies reduced their contracts with the likes of Nokia and Ericsson. The report mentions that back in 2019, China accounted for 27% of Nokia’s net sales. In the previous quarter, the sales numbers were down to 6% from China.

Nokia's recent financial reports showed a 9% increase in operating profit for the third quarter, primarily attributed to its cost-cutting initiatives. However, net sales fell short of expectations, highlighting the need for further measures to improve profitability.

Earlier this week, Meta announced layoffs across teams in WhatsApp, Instagram, and Threads division. However, the company didn’t disclose the exact number of employees that were laid off.