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Nokia is eliminating nearly 2,000 Chinese and 350 European jobs

17. 10. 2024 Thursday / By: Robert Denes / Business / Exact time: BST / Print this page

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D espite its Q3 2024 interim report published today, Finland's Nokia Corporation has cut nearly 2,000 jobs in China as part of a sweeping cost-cutting program as the Finnish company struggles with a sluggish telecommunications equipment market, according to a person familiar with the matter. among the latest news from Bloomberg.

The layoffs are part of a broad effort announced last year to reduce the workforce by up to 14,000 people, said the person, who asked not to be named. Nokia will employ about 10,400 people in Greater China at the end of 2023, according to a company report.

Nokia and its northern rival Ericsson AB have cut costs amid sluggish sales as telecom operators delay or scale back expensive infrastructure upgrades. In China, the world's largest 5G market, European companies are losing ground to local rivals such as Huawei Technologies Co. and ZTE Corp.

Nokia currently accounts for less than 5% of China's total handset market share, the spokesman said. Doing business has become increasingly challenging as US-China trade relations have soured as Chinese operators reject European equipment, just as the US and some European nations have rejected Chinese technology. Nokia has scaled back its presence in China and earlier this year sold part of its joint venture with Huawei in the country.

Nokia will cut another 350 jobs in Europe, including 48 in Finland, Nokia said on Thursday after notifying the unions. The company has already cut 7,500 jobs and said it has cut costs by 500 million euros ($543 million) so far as part of its broader program. The company currently has 78,500 employees.

Nokia disclosed the layoffs on the day of the announcement, which fell short of analyst estimates, saying the recovery was slower than expected.

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