The restructuring should permanently reduce costs by 600 million euros by the end of 2023. Then only 80,000 to 85,000 of the current around 90,000 employees should remain.

9.30 a.m., March 16, 2021

The Finnish network equipment supplier Nokia wants to cut up to 10,000 jobs. The restructuring should permanently reduce costs by 600 million euros by the end of 2023, as the group announced in Espoo on Tuesday. However, the renovation will result in costs of around 600 to 700 million euros by 2023, around half of which will be in the current year. By 2023, of the current workforce of around 90,000, only 80,000 to 85,000 are to be left.

The exact number depends on the development of the sales markets over the next two years. In parallel to the downsizing, Nokia wants to invest more money in research and development for 5G, digital infrastructure and cloud services.

The EuroStoxx group recently suffered from a waning demand. As has been known since February, Nokia boss Pekka Lundmark expects revenue to be stable at best in 2021, because, especially in North America, the demand for upgrading cellular networks to the faster 5G data transmission is likely to decline. The margin target for the operating result is 7 to 10 percent on a comparable basis. The company confirmed the outlook on Tuesday. The management will present more details on the strategy on Thursday at a capital market day.