Mumbai, October 19: Nokia Corporation has announced that it will cut up to 14,000 jobs in Q3 2023. According to reports, the Finnish telecommunication company said that following the 20% sales drop of 5G equipment. The company aim to reduce the cost base and increase the operation efficiency meeting the challenging market environment. Nokia has revealed that by laying off substantial workforce, it can streamline the operations and reduce the overall costs.

Nokia Corporation attempts to execute its overall plan for saving that reportedly ranges from 800 million to 1.2 billion euros by 2026. The company's aggressive plan to reduce the employees has long term thought process resulting into leaner workforce to align and achieve 14% margin target. As per the reports, the company announced this massive layoff to get immediate benefits. Tesla CEO Elon Musk Says 'Those Working From Home Are Detached From Reality'.

Nokia's Plans To Lay Off 14,000 Employees in 2023:

The reports say that Nokia's massive job layoff announcement comes with planned strategy as the company wishes to reduce current 86,000 to 72,000 and 77,000. Since Nokia faced a sales decline of 20% on 5G equipment, issues related to slowed down economy and infrastructural problem, the company took a step to reduce its spending. By slashing 14,000 jobs, the Nokia aims to save 400 million euros by 2024 and up to 300 million additional savings by 2025. Netflix Subscription Price Hike: Streaming Platform Hikes Prices of Its Plans As Company Earns 8.76 Million New Subscribers, Basic Plan Now Costs USD 11.99 in US.

Compared to last year, Nokia faced substantial decrease in the sales resulting in 24% decline year-on-year to 2.16 billion euros. As per reports, the operating profit of the company also dived by 64% year-on-year. The major decline was witnessed by the company in North America region. According to the reports, Nokia has described its sales volumes in India as "moderated'. Nokia has shown optimism about its future turnaround and improvements in Q4.

(The above story first appeared on LatestLY on Oct 19, 2023 11:59 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).