Nokia to Cut Up to 14,000 Jobs Amid Weak 5G Market Demand

Finnish company Nokia announced plans to cut up to 14,000 jobs in an effort to reduce costs after experiencing a 20% drop in third-quarter sales, primarily due to weaker demand for 5G equipment. The company’s shares fell by 2% following the news. Nokia’s CEO, Pekka Lundmark, expressed concerns about the challenging market situation, particularly the 40% decline in net sales in the North American market. Nokia aims to save between €800 million and €1.2 billion ($842 million to $1.26 billion) by 2026 and expects at least €400 million in savings in 2024. The company did not revise its full-year outlook but stressed the need for investment in faster mid-band equipment to address the growth in data traffic. Additionally, Nokia plans to protect its research and development division during the job cuts.