Finnish telecommunications company Nokia announced on Tuesday that it is planning to cut up to 10,000 jobs to reduce costs.
The 10 per cent reduction in its workforce aims to reduce costs by €600 million by 2023. The company did not specify in which countries job cuts would be carried out.
“Decisions that may have a potential impact on our employees are never taken lightly,” Nokia CEO Pekka Lundmark said in a statement. “Ensuring we have the right setup and capabilities is a necessary step to deliver sustainable long-term performance."
The company plans to invest in research and development, in particular in 5G technology. Lundmark, who took over the company in August 2020, has said he wants Nokia to become the world's leader in 5G, even at the expense of the company’s profitability in the short-term. It is currently competing with China’s Huawei and Sweden’s Ericsson and lately also with South Korea’s Samsung.
Investments will also be made in cloud and digital infrastructure.
“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,” Lundmark said.
On Monday, Nokia announced separate deals on partnerships with Amazon, Google and Microsoft to develop cloud technologies and build cloud-based 5G solutions for businesses.