Nokia, the Finnish telecom equipment manufacturer, is all set to get rid of per cent of its workforce. That means, about 10,000 employees will be asked to leave over a period of two years.
The move is part of a restructuring and cost-cutting exercise that will csot the Company about $715 million. As part of this exercise, the Company also plans to reduce site fragmentation in the long run.
The Company has been facing stiff competition in the 5G equipment space and has failed to grow the business.
This planned rehaul will reduce the 90,000-strong workforce to about 80,000 or 85,000 over a period of 24 months.
Since the appointment of the new CEO in 2020, the Company has been focussing on succeeding in the 5G space.
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.
Nokia’s share price has decreased by 50 per cent compared to what it was about six years ago, at the time of the acquisition of Alcatel-Lucent.
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.
Similarly, its mobile networks division will also invest further in 5G R&D and speed up the process to digitalise its processes.