Nokia: Profit and sales collapsed in the third quarter22. October 2023
Nokia: Profit and sales collapsed in the third quarter
Helsinki, October 20, 2023
Nokia reported a 20% decline in third-quarter revenue due to weaker demand for 5G devices. Profits fell 69% during this period compared to the previous year.
Nokia, once a leader in mobile phones, shifted its focus to telecommunications infrastructure after selling its phone division to Microsoft in 2013.
The company management then announced
Nokia said it would cut up to 14,000 jobs over three years after profits fell sharply in the third quarter.
The company’s management then announced:
– reduce the number of employees from 86,000 to possibly just 72,000 as part of a broader cost-cutting reorganization. This would reduce personnel costs by 10 to 15% and save at least 400 million euros (US$421.4 million) in 2024.
The company is targeting cost savings of €800 million to €1.2 billion ($1.3 billion) by 2026.