Layoff 2023: Nokia To Cut 14,000 Jobs After Sales Drop (Image: Nokia)

Finnish telecom conglomerate Nokia revealed its major layoff plans as part of its cost-saving measures. Nokia is planning to reduce as many as 14,000 jobs in an effort to reduce costs and streamline operations. The telecom group made this move as they experienced a 19% year-on-year decline in net sales during the third quarter. Nokia currently has a workforce of 86,000. Nokia mentioned in its statement that the new cost-cutting measures are expected to lead to a 72,000–77,000 employee organization.

“The most difficult business decisions to make are the ones that impact our people. We have immensely talented employees at Nokia and we will support everyone that is affected by this process,” said Pekka Lundmark, President and CEO of Nokia. Pekka Lundmark also added that it is a necessary step to adjust to market uncertainty and to achieve the company”s long-term profitability and competitiveness. Nokia said that they are expecting to act quickly on the new cost-cutting measures, with at least 400 million euros of in-year savings in 2024 and 300 million euros in 2025. Nokia also mentioned that the decline in third-quarter sales is influenced by higher interest rates and macroeconomic uncertainty.

Techcrunch recently reported that the tech industry has witnessed more than 240,000 jobs lost in 2023. Tech giants and startups across several sectors announced layoffs to tackle the market situation. Microsoft-owned LinkedIn announced on October 16 that the company would layoff almost 700 employees. This layoff affected engineering, product, talent, and finance teams on LinkedIn. In January 2023, Microsoft announced its biggest layoff process, affecting 10,000 employees.