Finland’s Nokia on Tuesday announced plans to cut up to 10,000 jobs as it moves to reset its cost base and invest in R&D and future capabilities including 5G, cloud and digital infrastructure — and help it challenge to Sweden’s Ericsson and China’s Huawei.
Nokia said the move is expected to lower the company’s cost base by €600 million by the end of 2023.
“These savings will offset increased investments in R&D, future capabilities and costs related to salary inflation,” said Nokia.
Nokia said it expects €600 million to €700 million of restructuring and associated charges by 2023.
The company maintained its 2021 outlook.
It said the planned restructuring is expected to result in an 80,000 to 85,000 employee organization over an 18 to 24 month period instead of the 90,000 employees Nokia has today.
“Decisions that may have a potential impact on our employees are never taken lightly,” said Nokia CEO Pekka Lundmark.
“Ensuring we have the right setup and capabilities is a necessary step to deliver sustainable long-term performance.
“My priority is to ensure that everyone impacted is supported through this process.”
Nokia said its Mobile Networks division aims to be the “indisputable top in wireless mobility networks and associated services.”
To achieve this goal “it will focus on strengthening technology leadership and will further invest in 5G R&D.”