Nokia to cut up to 14,000 jobs to lower costs in weak US, European market

Nokia Oyj to cut up to 14,000 jobs as reduced investment in fifth-generation mobile infrastructure from US and European operators weighs on the company.

That represent a 10 percent to 15 percent reduction in personnel expenses and is expected to save as much as €400 million ($421 million) next year and an additional €300 million in 2025, the Espoo, Finland-based mobile network company said in a statement on Thursday.

Nokia also posted weaker than expected earnings on Thursday in a separate statement.

Adjusted operating profit was €424 million ($467 million) in the third quarter, according to a statement. That compares to an average analyst estimate of €545.2 million, according to a Bloomberg survey.

Adjusted earnings per share came to 5 cents, less than the 7 cents estimated by analysts.

“We are tracking towards the lower end of our net sales range for 2023 and towards the mid-point of our comparable operating margin range,” Chief Executive Officer Pekka Lundmark said in the statement. He had previously painted a gloomy picture for the second half of the year when the company downgraded the full-year guidance in July.

After the second quarter, Nokia cut its full-year guidance for sales to €23.2 billion to €24.6 billion, with a comparable operating margin in a range of 11.5 percent to 13 percent. The top end of that range had previously been seen at 14 percent.

Makers of 5G equipment are struggling as operators in the US and the European Union seek to cut capital expenditures and adjust their inventories. Swedish rival Ericsson AB delivered a disappointing outlook this week, saying market weakness will persist into the fourth quarter and beyond.