Nokia to cut 10,000 jobs in latest cash savings plan

Bloomberg

Nokia Oyj plans to cut up to 10,000 jobs in the coming years as the telecommunications equipment maker looks for new ways to save money and stay competitive with rival Ericsson AB.
The measures are intended to cut 600 million euros ($715 million) off Nokia’s cost base by the end of 2023, the Finnish company said in a statement on Tuesday. The decision doesn’t entail a change of outlook for 2021, it said.
The job cuts, which could see Nokia parting ways with as much as 10% of its workforce, follow an annual report that left investors disappointed amid prospects of continued declines in revenue.
Nokia says its restructuring plan could cost as much as 700 million euros over the coming two years.
The move is part of a strategy unveiled in October, and creates a new operating model that Nokia hopes will help it cope better with the competitive markets it faces. That’s as Ericsson, which is based in Sweden, manages to build 5G networks faster than expected, reaching profitability targets ahead of schedule.
With the latest changes at Nokia, Chief Executive Officer Pekka Lundmark said that each of the company’s four business groups “has identified a clear path to sustainable, profitable growth and they are resetting their cost bases to invest in their future.”