Last week, Nokia, the Finnish telecom equipment manufacturer, had revealed plans to downsize its workforce by about 10,000 over a period of two years. This restructuring and cost-cutting exercise would cost the Company about $715 million, as was reported recently. Now, Nokia India has revealed that 1,500 people will lose their jobs in the country.
Although details are not available, the Company will begin consultation processes soon.
In the Asia-Pacific region, Nokia has 20,511 employees, with 15,000 employees working out of India from offices in Bengaluru, Chennai, Gurgaon, Mumbai and Noida. Its two global service centres are located in Noida and Chennai, with more than 4,200 employees. Its project offices are spread across 26 cities in India. While Bengaluru houses a Nokia Innovation Centre with over 6,000 employees involved in research in communication technologies, Chennai houses a manufacturing headquarter.
As was reported last week, the Company has been facing stiff competition in the 5G equipment space and has failed to grow the business, globally, as was expected.
This planned rehaul will reduce the 90,000-strong global workforce to about 80,000 or 85,000 over a period of 24 months.
Media reports observe that the Company has let go about 11,000 of its employees in the past few years. It is estimated that its workforce would have reduced by 20 per cent in five years’ time. Now, Nokia’s cloud and network services business plans to align portfolios and streamline service models and operations, focus more on research and development and increase productivity by reducing site fragmentation.