Nokia: 14,000 job cuts to reduce costs
(CercleFinance.com) - On Thursday, on its quarterly results, Nokia announced its intention to cut between 9000 and 14,000 jobs in order to reduce costs in a market context that is deemed "uncertain".
The network equipment supplier said it planned to reduce personnel costs by cutting its workforce from the current 86,000 to 77,000 or even 72,000.
The Finnish group estimates that these measures should enable it to reduce its cost base by E800m to E1.2bn by 2026 relative to 2023.
Personnel costs are expected to fall by 10% to 15%.
These announcements come at a time when Nokia's net sales fell by 15% in Q3 (-20% as reported), against a backdrop of rising interest rates, a trend that is slowing down investment by its operator customers.
Analysts nevertheless highlight the resilience of the company's operating margin, which fell to 8.5% in the quarter from 10.5% a year ago.
Nokia still expects an operating margin of 11.5% to 13% this year, on sales that it expects between E23.2bn and E24.6bn.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The network equipment supplier said it planned to reduce personnel costs by cutting its workforce from the current 86,000 to 77,000 or even 72,000.
The Finnish group estimates that these measures should enable it to reduce its cost base by E800m to E1.2bn by 2026 relative to 2023.
Personnel costs are expected to fall by 10% to 15%.
These announcements come at a time when Nokia's net sales fell by 15% in Q3 (-20% as reported), against a backdrop of rising interest rates, a trend that is slowing down investment by its operator customers.
Analysts nevertheless highlight the resilience of the company's operating margin, which fell to 8.5% in the quarter from 10.5% a year ago.
Nokia still expects an operating margin of 11.5% to 13% this year, on sales that it expects between E23.2bn and E24.6bn.
Copyright (c) 2023 CercleFinance.com. All rights reserved.