Nokia, the Finnish telecom equipment maker, announced on Thursday that it would cut up to 14,000 jobs, or 16% of its workforce, as it grapples with slowing 5G gear demand and uncertain growth.
The job cuts, which are expected to be completed by the end of 2026, will affect employees across all levels and functions globally. The company said it would focus on reducing costs and streamlining operations in order to improve profitability.
Nokia’s decision to cut jobs comes as the global telecom industry is facing a number of challenges, including rising inflation, supply chain disruptions, and the war in Ukraine. These challenges have led to a slowdown in demand for 5G gear, which is Nokia’s core business.
In addition, Nokia is facing increasing competition from Chinese rivals, such as Huawei and ZTE. These rivals have been able to offer lower prices and more aggressive financing terms, which has made it difficult for Nokia to compete.
Nokia’s job cuts are a sign of the challenges facing the global telecom industry. The company is not alone in cutting jobs; other telecom operators and equipment makers have also announced job cuts in recent months.
Why is Nokia cutting jobs?
Nokia is cutting jobs for a number of reasons, including:
- To reduce costs and improve profitability
- To streamline operations
- To respond to slowing 5G gear demand
- To address increasing competition from Chinese rivals
What does this mean for the future of Nokia?
Nokia’s decision to cut jobs is a sign that the company is facing some challenges. However, the company remains a leader in the global telecom equipment market. Nokia is also investing in new technologies, such as 6G and cloud networking.
It is too early to say what the long-term impact of Nokia’s job cuts will be. However, the company is likely to remain a major player in the global telecom industry.
Conclusion
Nokia’s decision to cut up to 14,000 jobs is a sign of the challenges facing the global telecom industry. The company is not alone in cutting jobs; other telecom operators and equipment makers have also announced job cuts in recent months.
It is too early to say what the long-term impact of Nokia’s job cuts will be. However, the company is likely to remain a major player in the global telecom industry.
