Nokia will cut up to 14,000 jobs in cost savings

Nokia has revealed plans to cut up to 14,000 jobs after falling sales.

The Finland-based telecommunications technology company, which has 86,000 employees worldwide, said it launched a cost-cutting effort across the company in a bid to boost its margins.

Nokia reported a 20% drop in sales in the third quarter.

Comparable net sales fell to €4.98 billion.

It blamed sliding demand for 5G equipment, especially in the US.

It has also hit sales at Nokia’s rival Ericsson, which has also cut jobs to save money this year as technology investment is hit by the global economic slowdown.

Nokia, which sold its mobile phone business to Microsoft in 2014, expected total savings of up to €1.2 billion. (1.04 billion pounds) in 2026.

It said head office functions would feel the bulk of the pain, while research and development (R&D) spending would be protected.

In 2018, the company employed more than 100,000 people.

Nokia declined to tell Sky News whether any of its UK employees, who are believed to be focusing on their R&D efforts, would be affected.

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A spokesperson said: “We have incredibly talented people at Nokia and we will support everyone affected by the process.

“Resetting the cost base is a necessary step to adjust to market uncertainty and protect our long-term profitability and competitiveness.

“We are now beginning the process of consultation on initial reductions. The program to lower the cost base is a 3-year program and the timing and details of the final reductions will only be decided after careful consideration and will depend on developments in end-market demand.”

Shares in the company fell 25% year-to-date ahead of the market open.

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