Any hope that fall 2023 wouldn’t be a repeat of the layoffs that struck the tech industry over last winter and spring seems to be diminishing by the day. The 150-year-old Finnish giant Nokia Corporation, which is one of the biggest telecommunications companies today, is now this month’s latest tech giant to announce it will ax jobs.
Nokia said on Thursday that it will cut up to 14,000 of its workforce after it revealed disappointing Q3 2023 numbers. The company’s third-quarter sales were down 20% on weak 5G equipment demand. In North America—one of Nokia’s most important markets—sales were down 40%.
Announcing the layoffs, which Nokia CEO Pekka Lundmark phrased as “resetting our cost-base to protect profitability,” the company said it would cut between 9,000 and 14,000 workers. Specifically, Nokia said the cost-cutting program “is expected to lead to a 72,000 to 77,000 employee organization compared to the 86,000 employees Nokia has today.” Those numbers mean Nokia could lay off as much as 16% of its global workforce.
The reason Nokia is giving a relatively broad range when it comes to the number of layoffs is because the final total “will depend on the evolution of end market demand.” In other words, it will depend on whether Nokia’s sales pick up. If not, it’s likely the layoffs will be at the higher end of the range.
As for where the job cuts will come from, Nokia says its Mobile Networks, Cloud, and Network Services divisions will be most impacted, as well as Nokia’s corporate functions. Nokia did not say in which countries its workforce will suffer the most losses.
Nokia’s announcement comes after competitor Qualcomm announced it would lay off about 2.5% of its workforce earlier this month. It also follows job cut announcements at LinkedIn and Bandcamp earlier this week.
Accedi per aggiungere un commento
Altri post in questo gruppo
As Elon Musk announced plans over the Fourth of July weekend to establish a third political party,
Dolores Ballesteros, a Mexico-based mother of two, was getting desperate. Her 6-year-old son kept hitting his brother, age 3, and seemed angry at her all the time. No matter what she did, she coul
Rarely has Silicon Valley experienced a more profound period of transformation than it has in the past handful of years. The big VC boom of 2020–2021. The great VC hangover starting in 2022. The g
A YouTube executive needed only 27 minutes to make the case that the company is taking over all aspects of how people create and consume video online.
That was the length of a recent tal
Every time I read about another advance in AI technology, I feel like another figment
Racist AI-generated videos are going viral on
Scientists are tracking a large gas planet experiencing quite a quandary as it orbits extremely close to a young star – a predicament never previously observed.
This exoplanet, as
