companies The phase of layoffs shows no sign of ending. Now news of another big layoff has come. In fact, Finnish company Nokia, which manufactures telecom equipment, has announced that the company may lay off 14 thousand of its employees. The company said Thursday it plans to cut up to 14,000 employees worldwide, or 16 percent of its workforce, to cut costs after falling third-quarter sales and profits. The company follows the January–December financial year. The company said the move is aimed at reducing its cost base and improving operations to deal with the current market uncertainty.
Company preparing to reduce costs
According to a statement issued by Nokia, the company aims to reduce its costs between 800 million euros ($843 billion) to 1.2 billion euros by the end of 2026. The move will reduce the company’s employee headcount to between 72,000 and 77,000, from the current 86,000. The mobile network business, the company’s largest unit by revenue, declined 24 percent to 2.16 billion euros. The operating profit of this unit has declined by 64 percent. The main reason for this was the weak trend of the North American market.
Ericsson also made big layoffs
Nokia Chief Executive Officer (CEO) Pekka Lundmark said that we are taking decisive action at three levels: strategic, operational and cost. I believe these actions will make us stronger and deliver significant value for our shareholders.” Nokia is one of the leading suppliers of the new generation of broadband technology, 5G, along with Sweden’s Ericsson, China’s Huawei and South Korea’s Samsung. Earlier this year, Ericsson also laid off eight percent of its workforce.
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