Nokia Layoffs- Nokia has laid off 2,000 employees in Greater China and plans to reduce 350 jobs in Europe. The layoffs are part of the company’s broader plan to reduce costs and streamline operations.
New Delhi. The phase of layoffs in tech companies is not stopping. After Facebook and Instagram’s parent company Meta, now Nokia is facing layoffs. Nokia has laid off about 2000 employees in Greater China, which is about a fifth of the company’s total employees. This step has been taken as part of efforts to cut costs. According to a Reuters report, Nokia is also planning to lay off 350 more employees in Europe. Nokia has several offices in Beijing and Shanghai as well as Hong Kong and Taiwan, which are part of the company’s Greater China region and from where it serves clients like China Mobile.
Nokia had already announced that it would cut 14,000 jobs to save between 800 million euros and 1.2 billion euros by 2026. This layoff is part of the same plan. A Nokia spokesperson has confirmed that consultation has started regarding the layoff of 350 employees in Europe, but did not comment on the layoffs in Greater China.
Nokia’s employee count reduced to 78,500
According to the company’s report, by December 2023, Nokia had 10,400 employees in Greater China and 37,400 in Europe. When Nokia announced job cuts last year, its total employees were around 86,000. The company aims to reduce this number to between 72,000 and 77,000 by 2026. Currently Nokia has about 78,500 employees.
China was once the second largest market
China used to be the second largest market for Nokia. But after the sanctions imposed on Huawei by Western countries from 2019, contracts from Chinese telecom operators for Nokia and Ericsson decreased. In 2019, 27% of Nokia’s net sales came from Greater China, but in the recent quarter this contribution has come down to less than 6%.
Operating profit increased by 9% in the September quarter
Nokia’s operating profit increased by 9% in the July-September 2024 quarter, mainly due to cost reduction. However, the company’s net sales were lower than expected, causing its shares to fall by 4%. Nokia CEO Pekka Lundmark said, “We are satisfied with the pace of cost reduction and are slightly ahead of our scheduled schedule.” He also clarified that this cost reduction will not affect R&D output.
