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Nokia<\/strong><\/a> is set to implement a significant workforce reduction of up to 14,000 jobs by 2026, as part of a strategic effort to combat a 20% decline in sales during the third quarter. The company cites slowing 5G demand, particularly in North America, as a major factor driving the decision.<\/p>\n \u00a0<\/p>\n Nokia plans to cut between 9,000 and 14,000 jobs globally by the end of 2026.<\/p>\n This initiative is aimed at reducing costs due to a 20% decline in sales reported during the third quarter.<\/p>\n \u00a0<\/p>\n The sales slump is attributed to decreased demand for 5G equipment, particularly in North America.<\/p>\n \u00a0<\/p>\n Nokia<\/strong><\/a> aims to save between \u20ac800 million and \u20ac1.2 billion by 2026.<\/p>\n This move is in response to challenges posed by factors such as high inflation, rising interest rates, and reduced customer spending.<\/p>\n \u00a0<\/p>\n CEO Pekka Lundmark<\/strong><\/a> emphasizes the need for investments in networks enhanced by cloud computing and AI.<\/p>\n The decision for workforce reduction is driven by uncertainties in market recovery.<\/p>\n \u00a0<\/p>\n Initial reductions are expected to save the company \u20ac400 million in 2024 and \u20ac300 million in 2025.<\/p>\n \u00a0<\/p>\n CEO Pekka Lundmark<\/strong><\/a> acknowledges the difficulty of decisions impacting employees and assures support for those affected.<\/p>\n \u00a0<\/p>\n Nokia<\/strong><\/a> transitioned from being a leading mobile phone manufacturer to focusing on telecom equipment after selling its handset division.<\/p>\n \u00a0<\/p>\n Nokia emerged as a primary equipment provider for BT after the UK restricted Huawei from its 5G networks.<\/p>\n \u00a0<\/p>\n 5G equipment manufacturers, including Nokia and Ericsson, face challenges as operators in the US and EU reduce spending.<\/p>\n \u00a0<\/p>\n Several major tech companies, such as Meta<\/strong> <\/a>and Amazon<\/strong><\/a>, have implemented workforce reductions in response to economic challenges. Notably, a substantial percentage of affected employees found new employment within a short period.<\/p>\n \u00a0<\/p>\n Nokia\u2019s proactive approach to cost-cutting reflects the evolving dynamics of the 5G market. The company\u2019s strategic decisions will likely play a pivotal role in shaping its future trajectory within the telecom industry.<\/p>\n The post Nokia\u2019s Proactive Cost-Cutting Plan: 14,000 Job Cuts in Response to 20% Sales Drop and Shifting 5G Landscape<\/a> appeared first on Before You Take<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" \u00a0 Nokia is set to implement a significant workforce reduction of up to 14,000 jobs by 2026, as part of a strategic effort to combat a 20% decline in sales during the third quarter. The company cites slowing 5G demand, particularly in North Continue reading Nokia\u2019s Proactive Cost-Cutting Plan: 14,000 Job Cuts in Response to 20% Sales Drop and Shifting 5G Landscape<\/span>Nokia\u2019s Workforce Reduction Plan<\/strong>:<\/h3>\n
Reasons for Sales Decline<\/strong>:<\/h3>\n
Cost-Saving Goals<\/strong>:<\/h3>\n
CEO\u2019s Strategic Vision<\/strong>:<\/h3>\n
Projected Savings<\/strong>:<\/h3>\n
CEO\u2019s Support for Employees<\/strong>:<\/h3>\n
Nokia\u2019s Evolution<\/strong>:<\/h3>\n
Nokia\u2019s Role in 5G<\/strong>:<\/h3>\n
Industry-Wide Impact<\/strong>:<\/h3>\n
Tech Industry\u2019s Response<\/strong>:<\/h3>\n