Nokia announced it will lay off 14,000 or the equivalent of 16% of its workforce after reporting a 20% reduction in sales in Q3 2023. In the same period the company's profit also shrank 69% compared to the same quarter last year. The dwindling demand for 5G equipment is causing this decline.
The United States, which is Nokia's largest 5G equipment market, recorded a 40% decline in sales. With this workforce reduction ledge, Nokia aims to reduce costs between 800 million – 1.2 billion Euros by 2026.
The year 2023 is not a good year for the majority of telecommunications companies. Post-pandemic sales have yet to return to pre-pandemic levels with smartphone sales for example falling sharply in every quarter so far. Economic pressure and increasingly expensive device prices are factors in this reduction.
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