Nokia to axe upto 14,000 jobs. The reason will shock you!

Finnish telecoms giant Nokia will axe at least 9,000 to 14,000 jobs by the end of 2026. According to the sources, the decision has been taken down cut down the company’s cost. the move has been followed after the company reported a 20% drop in sales between July and September.

The tech giant has blamed slowing demand for 5G equipment in markets such as North America.

The company currently works with 86,000 employees around the world, and has axed thousands of jobs since 2015. According to an official statement from one of the company’s representatives, Nokia wants to cut costs by between €800m and €1.2bn (£695m-£1bn) by 2026. It is also said that company is planning for cost cutting by €400m in 2024 and €300m in 2025.

Meanwhile, Advances in cloud computing and AI will need “significant investments in networks that have vastly improved capabilities”, said chief executive Pekka Lundmark.

However, there is no official statement on where the layoffs will happen.

Nokia and 5G network

Nokia was among one of the biggest brands in the world, but somehow failed to meet popularity of the internet-based touchscreen phones like Apple iPhone and Samsung’s Galaxy.

Nokia focused on telecom equipment after selling its handset division to Microsoft, which the software giant later wiped down.

In 2020, Nokia benefited significantly from Huawei’s exclusion from the UK’s 5G networks as a result of an agreement it made to become the biggest equipment supplier to BT.

But as operators in the US and the EU curb spending, 5G equipment manufacturers have been having trouble.

Increased sales to India have been an attempt by Nokia and its Swedish rival, Ericsson, to make up for some of the shortfall, although 5G implementation has also been sluggish there. Earlier this week, Ericsson reported a fall in sales.

Notably, the company this year also had laid of thousands of employees, which would certainly affect the business.