Nokia on Thursday revealed that it has invited the representatives of its networks division to consultative negotiations with a view to shedding roughly 350 positions.
The network equipment manufacturer said the cost-cutting plans are expected to affect all areas of the division, as well as relevant support functions, and be realised in all of its offices in Finland – in Espoo, Oulu and Tampere – with the sole exception of its production facility in Oulu.
“The planned adjustment measures are necessary to secure the long-term competitiveness of Nokia. The market conditions in the year before last were challenging for communications service providers and, as we have noted previously, the market is expected to contract further in the ongoing year,” Tommi Uitto, the country senior officer of Nokia Finland, says in a press release.
“To succeed in this market environment we must continue to rationalise our operations across the board, also in Finland. Decisions such as these are never easy, but we will do our utmost to implement the planned changes responsibly and support our staff during the transformation process,” he adds.
Nokia added that it expects to reduce an additional 75 positions at its technology division in order to respond to the operational challenges and promote the cost-efficiency of its operations.
All of the announced cost-cutting measures are part of the network equipment maker’s efforts to generate annual cost savings of 1.2 billion euros by the end of 2018, a target it set after completing the acquisition of Alcatel-Lucent in 2016.
Nokia also announced yesterday it has initiated a review of the strategic options for its digital health business, which “may or may not result in any transaction or other changes”.
Aleksi Teivainen – HT
Photo: Jussi Nukari – Lehtikuva