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BRIEF-Nokia To Cut Up To 10,000 Jobs Over 2 Years

· 03/16/2021 03:56
BRIEF-Nokia To Cut Up To 10,000 Jobs Over 2 Years

- Nokia Oyj NOKIA.HE:

  • REG-NOKIA ANNOUNCES PLANS TO RESET ITS COST BASE TO INVEST IN FUTURE CAPABILITIES

  • THIS IS EXPECTED TO LOWER COMPANY'S COST BASE BY APPROXIMATELY EUR 600 MILLION BY END OF 2023

  • COMPANY MAINTAINS ITS 2021 OUTLOOK.

  • SAVINGS WILL OFFSET INCREASED INVESTMENTS IN RESEARCH AND DEVELOPMENT, FUTURE CAPABILITIES AND COSTS RELATED TO SALARY INFLATION.

  • PLANNED RESTRUCTURING IS EXPECTED TO RESULT IN AN 80 000-85 000 EMPLOYEE ORGANIZATION, OVER AN 18-24-MONTH PERIOD, INSTEAD OF APPROXIMATELY 90 000 EMPLOYEES NOKIA HAS TODAY.

  • PLANS ARE EXPECTED TO RESULT IN AN 80 000-85 000 EMPLOYEE ORGANIZATION OVER AN 18-24-MONTH PERIOD,

  • EXACT NUMBER WILL DEPEND ON MARKET DEVELOPMENTS OVER NEXT TWO YEARS.

  • NEW MODEL IS OPTIMIZED FOR BETTER ACCOUNTABILITY AND TRANSPARENCY, INCREASED SIMPLICITY AND IMPROVED COST-EFFICIENCY.

  • MOBILE NETWORKS AIMS TO BE INDISPUTABLE TOP IN WIRELESS MOBILITY NETWORKS AND ASSOCIATED SERVICES.

  • NETWORKS WILL FOCUS ON STRENGTHENING TECHNOLOGY LEADERSHIP AND WILL FURTHER INVEST IN 5G RESEARCH AND DEVELOPMENT.

  • NETWORKS WILL STREAMLINE ITS PORTFOLIO AND REDUCE INVESTMENT LEVELS IN MATURE OR DECLINING PARTS OF PORTFOLIO

  • CLOUD AND NETWORK SERVICES INTENDS TO ALIGN PORTFOLIOS AND STREAMLINE SERVICE MODELS

  • NETWORK INFRASTRUCTURE WILL REMAIN LARGELY UNCHANGED ALTHOUGH IT WILL INCREASE ITS RESEARCH AND DEVELOPMENT INVESTMENTS

  • NOKIA TECHNOLOGIES WILL REMAIN LARGELY UNCHANGED.

  • TOTAL RESTRUCTURING AND ASSOCIATED CHARGES OF APPROXIMATELY EUR 600–700 MILLION, OF WHICH APPROXIMATELY 50% IS EXPECTED IN 2021

  • ADDITIONALLY, NOKIA CONTINUES TO EXPECT APPROXIMATELY EUR 500 MILLION OF CASH OUTFLOWS RELATED TO ITS PREVIOUS RESTRUCTURING PROGRAM

  • OF APPROXIMATELY EUR 600–700 MILLION, , APPROXIMATELY 15% IS EXPECTED IN 2022, AND APPROXIMATELY 35% IS EXPECTED IN 2023

Source text for Eikon: ID:nGNE1xzg8v

Further company coverage: NOKIA.HE


(Gdansk Newsroom)

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