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Nokia preparing for a global jobs cull

Nokia may be planning to cut between 10,000 and 15,000 jobs as part of its global redundancy programme announced last month.

In April, the the firm announced that it would be cutting 1,300 jobs in Finland and 1,400 in Germany after acquiring Alcatel Lucent. Nokia also cited challenging market conditions and a shift in technology as the reasons for its previous job cuts. The number of jobs lost in Finland has changed from 1,300 to 1,032 after recent negotiations.

A trade union shop steward at Nokia's Oulu site named Risto Lehtilahti confirmed the legitimacy of the estimated number of jobs that Nokia would be cutting: “We haven't heard any official numbers, but based on the information from our union contacts, I would estimate the global impact of this round would likely be around 10,000 to 15,000 jobs.”

Currently Nokia employs around 104,000 people worldwide and is in the process of holding talks with employee representatives in around 30 countries. A spokesperson from the company made it clear that the number of jobs that will be cut are merely estimated: “Nokia has not given out any global figure. This is a global process with many moving parts in many countries, so we don't have an overall figure to share.”

Nokia explained why it would be cutting jobs in April with the Alcatel Lucent deal being at the centre of the cuts. There are many areas of overlap that exist between the two companies such as in R&D, regional and sales organisations and corporate functions. After the acquisition many positions at both companies immediately became redundant and Nokia made the decision that some employees at both companies would have to go.

The firm is also having difficulty adapting to growing trends in technology such as the move to 5G, the Internet of Things and the rise of cloud computing. However, Nokia knew that it would have to cut costs in order to acquire Alacatel Lucent and had previously increased its cost-cutting target before the deal was finalised.

Image source: Shutterstock/ Joe Ravi

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.