Nokia, a Finnish telecom giant, to cut up to 10,000 jobs over next two years

Nokia, a Finnish telecom giant, to cut up to 10,000 jobs over next two years
A Finnish Telecom Giant Nokia, Source: Web

On Tuesday, Nokia (Finnish telecoms giant) said that it will slash up to 10,000 jobs in the upcoming two years as a part of a previously decided reform program while increasing investment on 5G and R&D capabilities to potentially compete with its main rival, Ericsson.

In the future two years, the Finnish company is expecting to acquire a staff of between 80,000 and 85,000 workers, which is down from ninety-thousand. Moreover, the reform is anticipated to lower the firm’s cost base by around 716 million dollars by late 2023.

The company hopes the rearrangement to cost between 716 million dollars and 835 million dollars by 2023, of which around fifty-percent will be acquired this year.

Nokia, as part of the plan, will ramp up its investments in R&D and 5G programs and digital-infrastructure to beat 5G majors such as Huawei.

An equity expert at OP Financial Group in Helsinki, Kimmo Stenvall, described to Bloomberg that the company’s reformation program is a huge plan which reflects the pace of change in the telecom market.

Groups have a clear path to profitable growth

CEO and President of Nokia, Pekka Lundmark, said that the company now has 4 completely accountable business groups. He continued that each of them has identified a clear path to profitable and sustainable growth, and they are changing their cost bases to spend in their future.

Nokia, a Finnish telecom giant, to cut up to 10,000 jobs over next two years
Nokia, a Finnish telecom giant, to cut up to 10,000 jobs over next two years,
Source: Web

Lundmark described that each business group will intend to technology leadership, and in those regions where we opt to compete, we will plat to win.

Last August, when Pekka Lundmark was appointed as Nokia CEO, he pledged to implement innovation and changes for the sake of the company toward more efficiency to beat Ericsson (Swedish competitor). He threatened the firm expected to deal with financial crises in 2021, and it demanded to invest more in R&D.

In October, he said that they have planned that they will spend whatever it takes to get victory in 5G. He added that their customers are counting on them, and the company will be there for them.

Furthermore, he is likely to launch his long-term planning and establish financial targets on Thursday. Besides this, Wall Street experts anticipate the company to report 5.87 billion dollars in revenue for the first fiscal quarter, said Zacks Investment Research, which ramped up from 5.42 billion dollars in the same quarter previous year. The firm is anticipated to release its upcoming quarterly revenue report at the end of April.

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