Guwahati: In an attempt to streamline its losses, Nokia Corporation said on Thursday in a statement that it is planning to reduce its workforce by 9,000 to 14,000 in order to “reduce its cost base and increase operational efficiency.”
This will signify a reduction of 10 to 16 per cent from the total current 86,000 employees.
The sales of the company fell by 19 per cent in the third quarter.
“Mobile Networks net sales declined 19 per cent as we saw some moderation in the pace of 5G deployment in India which meant the growth there was no longer enough to offset the slowdown in North America,” Nokia CEO Pekka Lundmark said in a statement.
The company’s new cost-saving plan aims to achieve cost reductions of between 800 million euros and 1.2 billion euros by 2026.
The objective is to align with its long-term plan of achieving a comparable operating margin of at least 14 per cent by 2026.
“While our third-quarter net sales were impacted by the ongoing uncertainty, we expect to see a more normal seasonal improvement in our network businesses in the fourth quarter,” Lundmark added.