Beijing, October 19: Finnish multinational telecom and tech company Nokia announced that it would cut over 2,000 jobs in Greater China and 350 in Europe. The Nokia layoffs would be implemented as a part of the IT firm's cost-cutting measures. Nokia, once ruled the smartphone market, had been struggling to establish its foothold in the industry for quite some time. The reports said that the Nokia spokesperson came forward with the layoff announcement for Europe and did not mention the job cuts happening in China.

According to reports, Nokia employed around 10,400 employees in Greater China and around 37,400 in Europe, as per the annual report. As a part of its cost-cutting measure, the Finnish tech company aims to reduce around 14,000 jobs, which it announced last year. In 2023, the company announced its plan to lay off employees with expectations to save around US 800 million euros to 1.2 billion euros by 2026. BYJU’s Net Worth Is Zero: Founder and CEO Byju Raveendran Says His Edtech Firm Once Valued USD 22 Billion, Now Has ‘Zero’ Net Worth.

Reports said that China had been a major market for Nokia; however, the US banned Chinese companies, including Huawei, ZTE, and others, which negatively impacted the other operating companies in the Chinese market. Following the US ban, the Chinese companies reduced their contracts with Nokia and Ericsson. Earlier, Nokia's sales in China were around 27% of its total sales, which reduced to 6% in the previous quarter. 

Nokia layoffs will affect 2,350 employees in total including the ones in Greater China and Europe. Nokia maintained its offices in Beijing, Shanghai, Hong Kong and Taiwan. The company still has some major clients in China, such as China Mobile. As a part of the cost-cutting measure, the company reportedly achieved USD 500 million. Nokia operating profit rose 9% on Thursday due to cost-cutting but its net sales declines, with a 4% fall in shares. Meta Fires 24 Employees in Los Angeles Office for Misusing USD 25 Meal Voucher on Toothpaste, Detergent and More.

During a call, Nokia CEO Pekka Lundmark said that the company was not cutting jobs at the expense of R&D output. He further expressed his happiness that the company's cost reduction was progressing well and keeping ahead of schedule. 

(The above story first appeared on LatestLY on Oct 19, 2024 12:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).