Nokia plans to trim employee roster over next 18 to 24 months
Nokia today announced plans to “reset its cost base” as part of the company’s ongoing restructuring. As the result of this effort, Nokia says it expects to cut staff from approximately 90,000 now to between 80,000 and 85,000 over the next 18 to 24 months. The company plans to achieve a cost base of approximately EUR 600 million by the end of 2023.
Company President and CEO Pekka Lundmark announced this past October a restructuring that will see Nokia organize its activities into four main areas: Mobile Networks, Network Infrastructure (originally, “Fixed and IP Networks”), Cloud and Network Services, and Nokia Technologies (see "Nokia restructures, touts planned strategy changes"). Network Infrastructure will contain Nokia’s Fixed Networks, IP Networks, Optical Networks, and Submarine Networks businesses. Nokia Technologies will handle the company’s intellectual property and licensing activities.
“Nokia now has four fully accountable business groups. Each of them has identified a clear path to sustainable, profitable growth and they are resetting their cost bases to invest in their future,” said Pekka Lundmark, president and CEO. “Each business group will aim for technology leadership. In those areas where we choose to compete, we will play to win. We are therefore enhancing product quality and cost competitiveness and investing in the right skills and capabilities.”
Nokia anticipates total restructuring and associated charges of approximately EUR 600–700 million due to the actions. With approximately 50% expected in 2021, approximately 15% expected in 2022, and approximately 35% expected in 2023. The company also continues to expect approximately EUR 500 million of cash drain related to its previous restructuring program.
The company plans to hold a Capital Markets Day this Thursday, March 18, when it will further discuss its plans. “Decisions that may have a potential impact on our employees are never taken lightly. Ensuring we have the right setup and capabilities is a necessary step to deliver sustainable long-term performance. My priority is to ensure that everyone impacted is supported through this process,” concluded Lundmark.
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About the Author
Stephen Hardy
Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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