Nokia cuts 14 thousand jobs – Kommersant
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Finnish telecommunications equipment manufacturer Nokia reported about plans to reduce up to 14 thousand employees as part of a program to increase profitability. The company’s management explains this by the need to reduce costs and increase efficiency in a weak market. Nokia explained that the scale of the cuts will depend on the “demand situation in the sales markets,” but noted that they do not expect a quick recovery in demand.
Nokia currently employs 86 thousand people. The company expects that the cuts will reduce personnel costs by 10-15% and save at least €400 million in 2024, and from €800 million to €1.2 billion by the end of 2026.
Nokia published a statement about the launch of a profitability improvement program and related cuts simultaneously with financial results third quarter. During the reporting period, net sales fell 20% year-on-year to €4.98 billion.
Profit fell 69% to €133 million, while operating margin fell from 8.3% to 4.8%. Nevertheless, Nokia confirmed its forecasts for annual results. The company expects net sales to be €23.2–24.6 billion and an operating margin of 11.5–13%. Nokia shares on the Helsinki stock exchange react to the company’s news by falling by almost 4%. Since the beginning of the year they have lost almost 30%.
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