NOK Nokia Corp

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)

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