Finnish telecom equipment maker Nokia has plans to cut down 350 jobs in Finland as a part of its plans to find savings worth EUR 700 million ($800 million) by next year.
Tommi Uitto, the head of the company’s Finnish operations, during a statement, on Tuesday, said- “The planned changes are indispensable to secure Nokia’s long-term competitiveness.“
At present, Nokia has about 6,000 employees in Finland.
The network industry is being dominated by Nokia, Sweden’s Ericsson and China’s Huawei. But all of these companies have been battered by years due to the slowing demand for existing 4G networks and increasing the doubts of investors over when new 5G contracts might begin to boost profitability or not.
Nokia and Ericsson might eventually get benefit from bans on Huawei equipment by the US and some of their allies but for now, these haven’t been materialized.
Uitto said- “The initial development of our 5G business has been going on strong and we will also increase our investments into this critical technology.“
Nokia recently announced their plans of cost-cutting in October, without showing the impact of this on the jobs. It is also yet to complete a EUR 1.2 billion programme of cost cuts, which had been launched after its 2016 acquisition of Franco-American Alcatel-Lucent. Shares of the company are also reduced by 0.7 percent after the announcement was made.