Telecom network vendor Nokia has kicked off massive job reduction to save EUR 900 million as part of its long term strategy.
Nokia did not reveal the number of jobs that will be negatively impacted due to its strategy. Nokia has more than 104,000 employees globally.
On January 14, Nokia and Alcatel-Lucent started as a single entity competing with Ericsson, ZTE and Huawei in the telecom equipment space.
The target of Nokia is to achieve EUR 900 million of operating cost synergies in 2018 related to the acquisition of rival Alcatel-Lucent.
Espoo, Finland-based Nokia is taking steps to adapt to challenging market conditions and to shift resources to future-oriented technologies such as 5G, the Cloud and the Internet of Things (IoT).
As part of the program, the company targets worldwide savings in real estate, services, procurement, supply chain and manufacturing.
The headcount reductions are expected to take place between now and the end of 2018. Nokia will cut jobs in areas where there are overlaps, such as research and development, regional and sales organizations as well as corporate functions.
Nokia President and CEO Rajeev Suri said: “When we announced the acquisition of Alcatel-Lucent we made a commitment to deliver EUR 900 million in synergies – and that commitment has not changed.”
Finnish communication giant Nokia said that it plans to slash about 1,300 jobs in Finland by 2018.
Nokia said in a press release on Wednesday that it is set to start collective negotiations. The technology company employs about 6,700 workers in Finland by the end of 2015.
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