Nokia to Cut Thousands of Jobs as Part of $716 Million Cost-Saving Plan
March 16 2021 - 4:32AM
Dow Jones News
By Dominic Chopping
Nokia Corp. said Tuesday that it will cut thousands of jobs as
part of plans to lower costs by around 600 million euros ($716
million) over the next couple of years.
The telecom-equipment maker said the cost cuts will offset
increased investments in research and development, including 5G,
cloud and digital infrastructure, salary inflation, and other areas
that will benefit it in the long-term.
The move will see Nokia's workforce cut to between 80,000 and
85,000 employees over the next 18-24-months, from the 90,000
employees it has today.
"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,"
Chief Executive Pekka Lundmark said.
"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," he said.
Costs of the restructuring are seen at between EUR600 million
and EUR700 million by 2023, with half of the costs expected to be
booked in 2021.
Nokia said its 2021 guidance is unaffected by the plans.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
March 16, 2021 04:17 ET (08:17 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Nokia (NYSE:NOK)
Historical Stock Chart
From Aug 2024 to Sep 2024
Nokia (NYSE:NOK)
Historical Stock Chart
From Sep 2023 to Sep 2024