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Nokia's Finnish union estimates 300 job cuts

Nokia's Finnish union estimates 300 job cuts

· 03/16/2021 06:47
Nokia's Finnish union estimates 300 job cuts

- Telecom company Nokia NOKIA.HE will likely cut about 300 jobs in Finland, mainly at its headquarters, as part of a wider restructuring plan, a Finnish union representative told Reuters.

Nokia on Tuesday announced plans to cut up to 10,000 jobs within two years to trim costs and invest more in research capabilities, to better compete with Sweden's Ericsson ERICb.ST and China's Huawei HWT.UL. nL8N2LE1RK

Workers Union shop steward Lasse Laurikainen said the employees were expecting layoffs, but they think the restructuring program is the right move for Nokia.

"From the point of view of the employees, I think cutting costs and having the opportunity to invest in our strengths and develop them is a step to the right direction," Laurikainen said.

The job cuts are part of a wider restructuring plan where Nokia aims to achieve 600 million euros in cost savings by end of 2023. At the same time, the company expects to spend 600-700 million euros in restructuring charges.

A Nokia spokesperson told Reuters that the company has just informed works councils and expect local consultation processes, where applicable, to start shortly.

"Timelines will become clearer once the consultation period finishes," the spokesperson said in an email.


(Reporting by Essi Lehto; Editing by Supantha Mukherjee and Louise Heavens)

((Essi.Lehto@thomsonreuters.com; +358505412375;))