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Nokia to cut up to 10,000 jobs

Christian Fernsby |
Nokia’s business groups announced plans to reset their cost bases and invest in R&D and future capabilities including 5G, cloud and digital infrastructure, as well as other areas that will benefit Nokia in the long-term.

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Topics: NOKIA   

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Related to these plans, Nokia expects:

Lower cost base of approximately EUR 600 million by the end of 2023. These savings will take place gradually and will offset increased investments in R&D, future capabilities and costs related to salary inflation. Additional long-term benefits that Nokia will action include streamlining its portfolio and reducing site fragmentation.

Total restructuring and associated charges of approximately EUR 600–700 million, of which approximately 50% is expected in 2021, approximately 15% is expected in 2022, and approximately 35% is expected in 2023. Additionally, Nokia continues to expect approximately EUR 500 million of cash outflows related to its previous restructuring program.

These changes do not change Nokia’s views on 2021.

These plans are expected to result in an 80 000–85 000 employee organization over an 18–24-month period, instead of the approximately 90 000 employees Nokia has today. The exact number will depend on market developments over the next two years.

“Nokia now has four fully accountable business groups. Each of them has identified a clear path to sustainable, profitable growth and they are resetting their cost bases to invest in their future,” said Pekka Lundmark, President and CEO.

“Each business group will aim for technology leadership. In those areas where we choose to compete, we will play to win. We are therefore enhancing product quality and cost competitiveness, and investing in the right skills and capabilities,” Lundmark continued.


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