Nokia is set to lay off 14,000 employees due to 20% dip in revenue

• Nokia experienced a 20% decline in quarterly sales.
• Nokia and Ericsson anticipate an increase in sales for the next quarter but have uncertainties about 2024.
• Nokia’s CEO believes that sales will eventually go up, but he is not sure when.

Nokia, the Finnish telecommunications equipment company, experienced a 20% decline in quarterly sales. To mitigate this, they will be downsizing by releasing 14,000 employees, representing more than 15% of their total workforce.

As per the CEO’s statement, 5G equipment sales in North America saw a significant 40% decrease, and other key markets have also surpassed their peak growth. Nokia anticipates that these workforce reductions will result in savings of 400 million euros by the conclusion of 2024, with an additional 300 million euros in savings expected in 2025.

Nokia is set to lay off 14,000 employees due to 20% dip in revenue

The United States is a major market for both Nokia and Ericsson, two equipment providers. While these companies anticipate a seasonal upturn in the next quarter, they also acknowledge ongoing uncertainty in 2024.

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