Connections +
News

Nokia layoffs imminent as $1.349B cost-cutting measures begin


April 7, 2016  


Print this page

Nokia this week said it is “beginning actions to reduce company personnel globally as part of its synergy and transformation program.” As previously announced, the company is targeting EUR900 million ($1.349 billion) of operating cost synergies to be achieved in full year 2018 related to the acquisition of Alcatel-Lucent. At the same time, the company said it 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.”

As part of the program, the company added it also continues to target 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. In a release, the firm said reductions will come largely in areas where there are overlaps, such as research and development, regional and sales organizations as well as corporate functions, the company said.

To start the process, Nokia representatives met this week with the company’s two European Works Councils. Similar meetings and consultations with employee representatives are taking place in close to 30 countries in the coming weeks. Processes and timelines will vary from one country to another.

“These actions are designed to ensure that Nokia remains a strong industry leader,” said Nokia president and CEO Rajeev Suri. “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. We also know that our actions will have real human consequences and, given this, we will proceed in a way that that is consistent with our company values and provide transition and other support to the impacted employees.”

Nokia plans to report on the implementation of the synergy and transformation program in connection with its quarterly earnings releases.

 

 


Print this page

Related


Leave a Reply

Your email address will not be published. Required fields are marked *

*