Current:Home > FinanceNokia plans to cut up to 14,000 jobs after sales and profits plunge in a weak market-InfoLens
Nokia plans to cut up to 14,000 jobs after sales and profits plunge in a weak market
View Date:2024-12-23 15:20:11
HELSINKI (AP) — Telecom gear maker Nokia said Thursday that it is planning to cut up to 14,000 jobs worldwide, or 16% of its workforce, as part of a push to reduce costs following a plunge in third-quarter sales and profit.
The Finnish wireless and fixed-network equipment provider said the planned measures are aimed at reducing its cost base and increasing operational efficiency “to navigate the current market uncertainty.”
The company said it is aiming to lower its cost base by between 800 million euros ($843 billion) and 1.2 billion euros by the end of 2026. That was set to lead to a reduction from 86,000 employees now to between 72,000 and 77,000 during that time period.
Nokia’s third-quarter sales plummeted 20%, to 4.98 billion euros from 6.24 billion, compared with the same three-month period last year. Comparable net profit plunged to 299 million euros from 551 million in the July-to-September quarter from a year earlier.
The company’s biggest unit by revenue — the mobile networks business — declined 24% to 2.16 billion euros, driven mainly by weakness in the North American market. Operating profit for the division fell 64%.
“We continue to believe in the mid- to long-term attractiveness of our markets,” Nokia CEO Pekka Lundmark said in a statement. “Cloud computing and AI revolutions will not materialize without significant investments in networks that have vastly improved capabilities.”
While it’s unclear when the market will improve, Nokia isn’t “standing still but taking decisive action on three levels: strategic, operational and cost,” Lundmark said. “I believe these actions will make us stronger and deliver significant value for our shareholders.”
Nokia is one of the world’s main suppliers of 5G, the latest generation of broadband technology, along with Sweden’s Ericsson, China’s Huawei and South Korea’s Samsung.
Earlier this year, Ericsson said it was cutting 8% of its global workforce as it looked to reduce costs.
veryGood! (141)
Related
- Cowboys owner Jerry Jones responds to CeeDee Lamb's excuse about curtains at AT&T Stadium
- Why Mike Tyson is a 'unicorn' according to ex-bodybuilder who trained former heavyweight champ
- 'Ministry of Ungentlemanly Warfare' fact check: Did they really kill all those Nazis?
- 2024 NFL draft selections: Teams with most picks in this year's draft
- Gavin Rossdale Makes Rare Public Appearance With Girlfriend Xhoana Xheneti
- 2 young siblings killed, several people hurt when suspected drunk driver crashes into Michigan birthday party, officials say
- In a shocker, David Taylor fails to make Olympic wrestling team. Aaron Brooks earns spot
- In a shocker, David Taylor fails to make Olympic wrestling team. Aaron Brooks earns spot
- After Baltimore mass shooting, neighborhood goes full year with no homicides
- Bringing back the woolly mammoth to roam Earth again. Is it even possible? | The Excerpt
Ranking
- The state that cleared the way for sports gambling now may ban ‘prop’ bets on college athletes
- Rep. Tom Cole says the reservoir of goodwill is enormous for House Speaker amid effort to oust him
- 'Ministry of Ungentlemanly Warfare' fact check: Did they really kill all those Nazis?
- Vice President Harris to reveal final rules mandating minimum standards for nursing home staffing
- Federal judge blocks Louisiana law that requires classrooms to display Ten Commandments
- Singer Renée Fleming unveils healing powers of music in new book, Music and Mind
- The Supreme Court will decide whether Trump is immune from federal prosecution. Here’s what’s next
- Debi Mazar tells Drew Barrymore about turning down 'Wedding Singer' role: 'I regret it'
Recommendation
-
New wildfires burn in US Northeast while bigger blazes rage out West
-
Takeaways from the 2024 Olympic wrestling trials: 13 athletes punch tickets to Paris
-
Biden is marking Earth Day by announcing $7 billion in federal solar power grants
-
The Best Reef-Safe & Reef-Friendly Sunscreens to Protect Your Skin & the Environment
-
South Carolina lab recaptures 5 more escaped monkeys but 13 are still loose
-
Andrew Jarecki on new 'Jinx,' Durst aides: 'Everybody was sort of in love with Bob'
-
Damian Lillard scores 35 as Bucks defeat Pacers in Game 1 without Giannis Antetokounmpo
-
Oklahoma bus driver crashes into a building after a passenger punches him, police say