Nokia Layoffs: 14000 people will lose their jobs in Nokia, preparations are being made to reduce costs after falling sales.

Finland’s telecom equipment manufacturing group Nokia may reportedly lay off 14 thousand people. The group reported that its overall sales declined by 20% in the third quarter due to slow sales of 5G equipment in markets such as the US. After this decline, the company is working on a plan to fire 14,000 people to cut its costs.

According to media reports, Nokia wants to cut its costs by 800 million euros to 1.2 billion euros by 2026 by reducing the number of employees. The company wants to keep its operating margin at least 14% by 2026.

Nokia currently has 86000 employees

The company aims to increase its employee strength to 72,000-77,000. Currently Nokia has 86,000 employees.

In recent days, Nokia has recorded weaker-than-expected earnings. The company’s operating profit in the third quarter was $467 million. Adjusted earnings per share came in at 5 cents, below analysts’ expectations of 7 cents.

The CEO of the company said – this is the most difficult business decision

“The toughest business decisions are those that affect our people. We have extremely talented employees at Nokia and we will support everyone affected through this process,” Nokia CEO Pekka Lundmark said in the statement.

The company said mobile network sales fell 19% in the third quarter from a year earlier due to a slowdown in the pace of 5G deployment in markets like India. “We continue to believe in the mid- to long-term attractiveness of our markets,” Lundmark said.

Nokia’s layoff announcement came on the same day the company reported worse-than-expected results. Sales in the third quarter fell 15% compared with the same period a year earlier, as macroeconomic uncertainty and higher interest rates continued to weigh on operator spending, the report said.