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The job cuts are wider restructuring to cut up to 14,000 roles by 2026
Nokia has laid off nearly 2,000 employees in China, about 20% of its workforce in the country, with plans to cut an additional 350 jobs in Europe, according to a Reuters report citing two sources familiar with the matter.
Speaking to Reuters, a Nokia spokesperson confirmed that discussions are underway regarding the European layoffs but declined to comment on the situation in China.
As of December 2023, Nokia employed 10,400 people in Greater China and 37,400 in Europe, according to its annual report.
The reduction in these workforces are part of a previously announced plan to cut up to 14,000 jobs globally by 2026, aiming to save between €800 million and €1.2 billion. By 2026, Nokia plans to have reduced its workforce from around 86,000 employees to between 72,000 and 77,000.
This job cutting process has already begun in a number of key markets, with hundreds of job losses announced earlier this year in the company’s home market of Finland, as well as the US and other markets.
“Resetting the cost base is a necessary step to adjust to market uncertainty and to secure our long-term profitability and competitiveness,” said Nokia’s CEO, Pekka Lundmark in Q3 last year.
Nokia’s sales in China have declined since Western countries began banning Huawei in 2019, leading to reduced contracts for both Nokia and rival Ericsson. Sales in China, which was once Nokia’s second-largest market, have dropped from 27% of the company’s net sales in 2019 to less than 6% in the latest quarter.
Despite this, Nokia still has offices in Beijing, Shanghai, Hong Kong, and Taiwan, and serves major clients like China Mobile.
On Thursday, Nokia reported a 9% rise in its Q3 operating profit, primarily due to cost-cutting measures. However, its net sales fell short of expectations, causing a 4% drop in share value.
Lundmark has stated that the cost-cutting measures will not impact Nokia’s research and development, and the company is slightly ahead of its savings schedule.
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