(CercleFinance.com) – Nokia announced Thursday on the occasion of the publication of its quarterly results its intention to eliminate between 9,000 and 14,000 jobs in order to reduce its costs in a market context deemed ‘uncertain’.
The network equipment manufacturer specifies that it plans to lower its personnel costs by reducing its workforce from 86,000 currently to 77,000, or even 72,000 people.
The Finnish group estimates that these measures should allow it to reduce its cost base by between 800 million and 1.2 billion euros by 2026, compared to 2023.
Its personnel costs should therefore fall by 10% to 15%.
These announcements come as Nokia saw its net turnover decrease by 15% in the third quarter (-20% in published data) against a backdrop of rising interest rates, a dynamic which is slowing down investments by its operator customers.
Analysts, however, underline the good resistance of the company’s operating margin, which fell to 8.5% over the quarter compared to 10.5% a year earlier.
Nokia also continues to forecast an operating margin of between 11.5% and 13% this year, for a turnover still expected between 23.2 and 24.6 billion euros.
Nokia shares listed on the Paris Stock Exchange fell 0.1% following these announcements, compared with a decline of 0.6% for the sector’s European index, the STOXX Europe 600 Telecommunications.
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