In 2019, Nokia hired 370 employees in Finland as part of its plan to invest in 5G, and quest to invest in certain priority areas in Finland. Now as the Finnish multinational looks to cut €500 Mn from operating costs, it plans to cut some jobs as well.
As per the latest report, Nokia is planning to cut 180 jobs in Finland, with staff reduction negotiations to begin on 21st January. While the layoffs will impact all Nokia locations in Finland, with the biggest impact expected at the vendor’s headquarters in Espoo, the cuts will not affect development of 5G products at its main factory in Oulu.
Nokia President of Mobile Networks Tommi Uitto shared, “The savings program we launched in 2018 has progressed as planned. We will continue to improve our operational capability and ensure the long-term competitiveness of the company. These decisions are not easy and we will do our best to support our staff during the change process.”
As the Finnish company lags behind its peers Ericsson and Huawei in 5G development, it is working towards restoring investors’ confidence. Earlier this month, Nokia shared it had reached 63 commercial 5G contracts to date. It is involved in another few dozen trials, pilots, and demonstrations of the technology globally.
Uitto, in a statement last week, shared, “We have more than 350 customers in 4G, but these first 63 customers represent some two third of our global radio access networks business in a typical year.”
As Nokia continues to combat high costs associated with its first generation 5G products, challenges in China, and pricing pressure in early 5G deals, more layoffs might follow.