Nokia expects to recognize the revenue related to this new patent license agreement starting in January 2024. The agreement is consistent with the assumptions Nokia has disclosed in the commentary with respect to Nokia Technologies long-term outlook in its Financial Report for Q1 issued on April 20, 2023.
Nokia plans to cut up to 83 more jobs in Finland31. 08. 2023 Thursday / By: Robert Denes / Generic / Exact time: BST / Print this page
N okia plans to cut up to 83 more jobs in Finland, according to an email sent to employees by Tommi Uito, head of mobile networks and country manager for Finland. The staff reductions apply to all Nokia offices in Finland: in Espoo, Tampere and Oulu. The company estimates that most of the reductions will affect Espoo.
July, Nokia calculated in its earnings warning that year-end turnover would be weaker than previously estimated and would weaken profitability. Due to the uncertainty of the global economy, customers have reduced their purchases from Nokia and its competitor, Ericsson. In addition, as a result of the increase in interest rates, the financing costs of the customers increased, therefore the new investments were postponed.
“We must continue to carefully control our cost structure and focus resources on the most important functions. This is in line with the plan announced at the beginning of 2021, the aim of which is to achieve a cost structure that is approximately EUR 600 million lower by the end of 2023," Uitto writes in his email.
“I fully understand that this announcement of potential job cuts may cause concern or uneasiness. Our goal is to carry out the planned changes responsibly, and we will ensure that the employees who may be laid off receive all the necessary information about the available opportunities and support measures," writes Uitto in his e-mail message.
At the end of July, in connection with the publication of the interim report, Helsingin Sanomat asked CEO Pekka Lundmark whether it was possible to eliminate even more jobs in Finland.
“Finland is one of the most important countries for our product development and we have around 6,800 employees here in Espoo, Tampere and Oulu. Finland remains one of our most important product development locations. I cannot guess what the exact number of jobs will be in the future."
Can it be said that at least there are not too many new job cuts coming to Finland?
"From this point of view, I do not comment on the future at all, because everything depends on our market success. We announced that we cut 155 jobs in Finland, but it's good to remember that we've hired about 1,200 employees in Finland over the past few years,” Lundmark told HS in late July.