Nokia to cut up to 14,000 jobs in cost-cutting drive | Business News

Nokia has revealed plans to shed up to 14,000 jobs following a slump in sales.

The Finland-based telecoms technology firm, which has 86,000 staff worldwide, said it was launching a cost-saving drive across the business in a bid to boost its margins.

Nokia reported a 20% fall in sales during its third quarter.

Comparable net sales fell to €4.98bn (£4.3bn), well short of analysts’ estimates.

It blamed sliding demand for 5G equipment, particularly in the US.

That’s also hit sales at Nokia’s rival Ericsson, and it too has cut jobs to save cash this year as technology investment is hit by the global economic slowdown.

Nokia, which sold its mobile phone business to Microsoft in 2014, forecast total savings of up to €1.2bn (£1.04bn) by 2026.

It said that head office functions would feel the bulk of the pain, while spending on research and development (R&D) would be protected.

The company had employed more than 100,000 people in 2018.

Nokia declined to tell Sky News whether any of its staff in the UK, who are understood to focus on its R&D efforts, would be affected.

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A spokesperson said: “We have immensely talented people at Nokia and we will support everyone that is affected by the process.

“Resetting the cost-base is a necessary step to adjust to market uncertainty and protect our long-term profitability and competitiveness.

“We are now beginning the process of consultation on initial reductions. The program to lower cost base is a 3 year program and the timing and detail of final reductions will be decided only after careful consideration, and will depend on the evolution of end market demand.”

Shares in the company were 25% down in the year to date ahead of the market open.