STOCKHOLM: Finnish telecom gear group Nokia on Thursday said it will cut up to 14,000 jobs as part of a new cost savings plan after third-quarter sales drop 20% due to slowing sales of 5G equipment in markets such as North America.
The company is targeting between 800 million euros ($842 million) and 1.2 billion euros in cost savings by 2026 as it seeks to be on track to deliver its long-term comparable operating margin plan of at least 14% by 2026.
The program is expected to lead to a 72,000-77,000 employee organization compared to the 86,000 employees Nokia has today, the company said in a statement.
“Nokia expects to act quickly on the program with at least 400 million euros of in-year savings in 2024 and a further 300 million euros in 2025,” the company said.
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Comparable net sales fell to 4.98 billion euros from 6.24 billion euros last year, missing the estimated 5.67 billion euros, according to a LSEG poll.
“While our third quarter net sales were impacted by the ongoing uncertainty, we expect to see a more normal seasonal improvement in our network businesses in the fourth quarter,” Chief Executive Pekka Lundmark said.
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