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Nokia to cut jobs worldwide over next two years, Why?

Bengaluru- On Tuesday, Nokia declared its new plans to cut up to 10,000 jobs within two years. This step has been taken to trim costs and invest more in the research capabilities to move forward with its new 5G networks business. 

The Finnish Telecommunications company Nokia has worked upon its new research and analysis for an upcoming project and wants funds for that, that’s why it is cutting employment all over the world. 

The 10,000 or 11% of jobs cut off, which is around between 80,000 and 85,000 reduction in Nokia’s global workforce over the coming 18 to 24 months, most probably 90,000 now. There are no figures of the exact count, as it will depend on numerous factors, specifically on Market development. The company stated in the statements that it has decided to invest around the estimated 600 million euros annual cost savings in R&D (research and development), particularly in 5G digital infrastructure and cloud business.

Nokia Finnish telecommunications seeks to set up its challenge China’s Huwaei and Sweden’s Ericsson. And preparing itself to grow immensely in the technological Marketplace.

The newly assigned Nokia’s Chief Executive Officer Pekka Lundmark, who took over in August’2020, has pledged recently to catch up in 5G, the new generation mobile networks. This got more desirable after Nokia fell behind its rivals-  China’s Huwaei and Sweden’s Ericsson. Due to some reasons, it fumbled out the early rounds of 5G new generation networks as it was focusing more on the integration of Alcatel Lucent-the French Smartphone and wireless equipment company which was acquired back in 2015. 

This move will help the company save a lot of wealth approximately around $715.7 million by the end of 2023, and that’s quite a lot. These funds can easily offset raised investments and help them function well and effectively. But somewhere it will impact thousands of people and lead them off to other jobs. 

Later on, the spokesperson said there’s no need to worry, as they just cutting off jobs from this, but is planning to recruit continuously in 5G, with the focus on its domestic market. He added- In Finland, we have already hired more people than we have reduced during the past two years, and we expect the impact of these planned changes declared today to be net positive”.

Nokia is ramping up investments and finding better opportunities to grow with strong partnerships with the leading tech giants such as Google Cloud, Amazon as the new applicants for the upcoming technology. Not only this, but it is also teaming up with Microsoft and NASA in October that seeks up a 4G network on the moon. 

And on this, CEO Pekka Lundmark said- In those areas where we choose to compete, we will surely play to win, we are therefore enhancing product quality and cost competitiveness, and investing in the right skills and capabilities. 

Hence, this conveys that according to the facts and figures, and statements by the firm, people could find better opportunities and grow their careers while trying to join their new project. But at some point, it would be more better the employees would be shift internally to research and development rather than cutting off jobs and more. According to the firm’s need, it is somewhere effective to go with the plan, and with new partnerships, it will more impressive. 

Note: This news is based on millions of articles over the internet, Global Business Line does not take any responsibility for the facts and information mentioned in this news article.

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