Nokia recently announced today that the company will reduce employee count globally, up to 14% of its approximately 104,000-strong global workforce. After the recent acquisition of Alcatel-Lucent, Nokia is targeting to achieve EUR 900 million of operating cost by 2018. Simultaneously, Nokia is planning to direct its resources to future-oriented technologies such as 5G, the Cloud and the Internet of Things (IoT). The company also continues to target worldwide savings in real estate, services, procurement, supply chain, and manufacturing.
The headcount reductions will occur between now and the end of 2018. The reductions will be mostly from the areas of research and development, regional and sales organizations as well as corporate functions.
To begin the process, Nokia representatives met the company’s two European Works Councils. Similar meetings and consultations with employee representatives will take place in 30 countries in the coming weeks. Processes and timelines will vary from one country to another.
Commenting on the headcount reduction, Nokia President, and CEO Rajeev Suri said, “These actions are designed to ensure that Nokia remains a strong industry leader. When we announced the acquisition of Alcatel-Lucent we made a commitment to deliver EUR 900 million in synergies – and that commitment has not changed. We also know that our actions will have real human consequences and, given this, we will proceed in a way that that is consistent with our company values and provide transition and other support to the impacted employees.”