Nokia to cut up to 14,000 jobs

Recently CNN.co.jp reported the following:

ノキア、最大１万４０００人の人員削減へ

2023.10.23 Mon posted at 09:34 JST

香港（ＣＮＮ） フィンランドの通信機器大手ノキアは、市場環境の「軟化」に対応するため、従業員を最大１万４０００人削減し、大規模なコスト削減を行うと発表した。

ノキアの従業員数は８万６０００人だが、広範なリストラの一環として、これを７万２０００～７万７０００人規模へと削減する。

ノキアの試算によれば、今回の人員削減により、人件費を１０～１５％減らすことができ、２０２４年だけでも少なくとも４億ユーロ（約６３０億円）の節約につながるという。

ノキアによれば、全体として２６年末までに累計で最大１２億ユーロの削減が行える見通し。ノキアは変革のために迅速に行動すると述べた。

ノキアは人員削減と同日に発表した業績で市場予測を下回る数字を明らかにしていた。ノキアは売り上げの落ち込みついて、マクロ経済の不確実性と金利の上昇が、通信事業者の支出に対して圧力になっていると説明した。

Translation

Hong Kong (CNN) Finnish telecommunications equipment giant Nokia had announced that it would cut up to 14,000 employees and make major cost cuts in response to a "softening" market environment.

Nokia's 86,000 employees would be cut to between 72,000 and 77,000 as part of a broader restructuring.

Nokia estimated that the latest job cuts could reduce personnel costs by 10 to 15 percent, leading to savings of at least 400 million euros (approximately 63 billion yen) in 2024 alone.

Overall, Nokia expected to achieve cumulative savings of up to 1.2 billion euros by the end of 2026. Nokia said it would act quickly to make changes.

On the same day as the job cuts, Nokia released its business performance that were lower than market expectations. Nokia explained that a drop in sales was related to macroeconomic uncertainty and rising interest rates, and pressure that came from making payment to Telecommunications carriers.

So, Nokia has announced that it will cut up to over tens thousand employees in response to a "softening" market environment. Nokia explains that a drop in sales is related to macroeconomic uncertainty and rising interest rates etc. I think high interest rate is affecting the performance of many businesses globally, including the sales of EV in some countries.

Note:

Telecommunications carriers (通信事業者)are companies that provide telecommunications services such as landline telephones, mobile telephones, and providers. They are called "telecommunications carriers" under the Telecommunications Business Law in Japan, and are often simply called "carriers."