Nokia, the telecom network equipment manufacturer, will be laying off up to 148 employees in Finland. However, it will not touch those working in the 5G development operations.
In January, Nokia had revealed its intention to slash about 180 jobs in Finland, but reduced the number after negotiating with the workforce. The Company had shared that its 5G product development in the country will continue, and the associated employees will not be laid off.
Nokia has about 6000 employees in Finland. It had recruited about 370 last year.
Recently, Nokia hired back Pekka Lundmark, who had earlier left to join Fortum, the Finnish state-owned energy company. He has replaced chief executive, Rajeev Suri, to help revive the 5G business. Suri had to step down to let Lundmark take on the role.
Suri, who has been with Nokia for over ten years, and served as chief executive for about six years now, will be leaving in August. He has been running the Company’s network business all this while, which accounted for 78 per cent of its revenue in 2019. But of late, the Company has been focussing on investing more on 5G development.
It revealed that it is targeting cost savings of $557 million by the end of this year. It has been prepared for lower profits due to stiff competition and extra investments.
With many network providers investing in 5G, it will be a huge challenge for Lundmark to turn around the fortune of Nokia.