Nokia To Axe Up To 14,000 Jobs To Cut Costs (bbc.com) 31
Finnish telecoms giant Nokia is to axe between 9,000 and 14,000 jobs by the end of 2026 to cut costs. From a report: The announcement was made as the company reported a 20% drop in sales between July and September. The company blamed slowing demand for 5G equipment in markets such as North America. It currently has 86,000 employees around the world, and has axed thousands of jobs since 2015. Nokia wants to cut costs by between $845m and $1.27bn by 2026, it said.
Its customers have been cutting spending amid high inflation and interest rates, it said. Advances in cloud computing and AI will need "significant investments in networks that have vastly improved capabilities," said chief executive Pekka Lundmark. "However, given the uncertain timing of the market recovery, we are now taking decisive action," he said. It said it wanted to "act quickly" by cutting costs by $422m in 2024, and $317m in 2025.
Its customers have been cutting spending amid high inflation and interest rates, it said. Advances in cloud computing and AI will need "significant investments in networks that have vastly improved capabilities," said chief executive Pekka Lundmark. "However, given the uncertain timing of the market recovery, we are now taking decisive action," he said. It said it wanted to "act quickly" by cutting costs by $422m in 2024, and $317m in 2025.
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Re:Wait... (Score:5, Informative)
They're making some pretty good for the buck android phones these days. Also, they own what's left of Bell Labs/Lucent, and still manufacture a lot of back end wireless telecom switch gear. You're phone might be connecting to one of their access points right now.
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Okay, they still sell Android phones. I did not know that. They don't seem to sell a lot of them, though.
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https://www.statista.com/stati... [statista.com]
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Actually Nokia sells mainly network hardware.
The phones are made by HMD Global Oy, the exclusive licensee of the Nokia brand for phones and tablets founded by ex-Nokia emplyees. Nokia has no finantial ties to HMD
Re:Wait... (Score:4, Informative)
Nokia proper doesn't make phones anymore -- that's done now by HMD Global, a separate company who license the Nokia brand.
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Not that seperate - Nokia have a substantial stake in the company.
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It sounds like Peraton Labs got some piece of Bell Labs from the 80's. https://en.wikipedia.org/wiki/... [wikipedia.org]
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They're making some pretty good for the buck android phones these days. Also, they own what's left of Bell Labs/Lucent, and still manufacture a lot of back end wireless telecom switch gear. You're phone might be connecting to one of their access points right now.
This isn't Nokia who make phones (that is HMD Global), this is the Nokia that makes mobile phone tower transmitters.
They spun their phone division off to Microsoft years ago which made the abomination of Windows Phone, then that got sold off to HMD Global who made some very nice, mid range Android phones (owner of a 7.1 and X10 myself).
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Yep. You just don't see them now because they sold their mobile phone business to Microsoft and they don't make stuff to sell to the general public any more. They do all their business in telecomm infrastructure gear these days.
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Yeah, that's the shocking part. I though they were long gone.
They always made the WORST phones. Every time I had to talk to somebody with a Nokia it was static and awfulness. Cheap garbage.
I remember being shocked when I found out they weren't a Chinese company.
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They're one of the biggest players in making mobile operator equipment. Most 5G and LTE tower equipment is either Nokia, Ericsson or Samsung.
Think of them sort of like the Cisco or Juniper of the mobile providers. Big expensive hardware and big expensive support contracts.
How is this possible? (Score:2)
We keep hearing about companies kicking people out, yet it's still impossible to find any skilled and talented people to hire.
Are those firings fakes? We're DESPERATELY trying to hire security personnel. And we're far from the only ones, my inbox alone is proof of that. What the hell is going on here?
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>Are those firings fakes? We're DESPERATELY trying to hire security personnel.
There are lots of people but not many of them are security people. The security problem grew to be everybody's problem. The tiny subset of people who understood computer security in its various manifestations was never going to scale with the demand.
I see job ads for competent security roles with pay scales for new grads. Triple the pay, go to a crypto conference or two and meet people you might hire.
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We keep hearing about companies kicking people out, yet it's still impossible to find any skilled and talented people to hire.
There is no contradiction: all those who get fired are essentially people whose roles can be fulfilled by AI - either right now or very soon - and those talented and skilled people everybody wants to hire are those few that can't be replaced by machines. Yet.
And yes, they're harder to come by than all the others.
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all those who get fired are essentially people whose roles can be fulfilled by AI
Why would you assume that? From TFA: The company declined to say where the job cuts would fall and The timing and detail of final jobs cuts "will be decided only after careful consideration, and will depend on the evolution of end market demand," the spokesperson added.
My guess would be in manufacturing and QA - since their reason for the layoffs is declining sales, they need fewer people to crank out the products. AI might play a part, but given the current state of the art it's hard to imagine that role
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We keep hearing about companies kicking people out, yet it's still impossible to find any skilled and talented people to hire.
Are those firings fakes? We're DESPERATELY trying to hire security personnel. And we're far from the only ones, my inbox alone is proof of that. What the hell is going on here?
Do you think the 86,000 Job cuts will be engineers only?
If they restrict corporate travel, then they will also need less analysts to book and coordinate said travel, those will be fired. IF they are not hiring but firing, recruiters will also be fired. Support personnel, finances people, corporate communications (the silly amgazines you see in the lobbies of said companies), all downsized.
They are selling less, so they will need less sales people and Key Acoount managers. fire some of those and consolidate
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Surely your company has local backups? We have local backups, right?! :)
This is not your Dad's Nokia (Score:3)
The Nokia the article talks about is not your dad's Nokia.
The Nokia we remeber from the '90s and '00s was a Juggernought making Cellphones, with a small telco gear company atteched. I worked in close proximity of the Telco Gear guys in '98~'00, I was with one of their customers. As a matter of fact, we were their first customer in the whole LatAm.
Then, in 2007, that telco gear small part fused with Siemens' telco gear part to form Nokia-Siemens-Networks.
Then, in 2010, nokia buys the Telco gear part of Motorola (not hte handset part)
Then in 2013, Microsoft Acquired the hand-held part, so nokia stoped making Handsets at that point.
Then in 2015, the voltoron of telco finally got completed, when Nokia acquired the Telco Gear Company "Alcatel-Lucent"
So, the Nokia of today DOES NOT MAKE HANDSETS, and should be called Nokia-Siemens-Motorola-Alcatel-Lucent-Networks, and makes telco gear.
The guys doing cellphones with the Nokia brand are called HMD Global, they License the Nokia brand from "Nokia Propper".
HMD Global has many investors, the biggest one if Foxconn (of assembling apple's wares fame), Qualcomm, Google and Nokia Technologies (the consumer technology arm of nokia propper) are minority investors.
So no, this nokia the article talks about does not make Phones, it makes Telco Infrastructure, for things like 5G (both NR and Core), G-PON and 10-GPON, telco Cloud (OpenStack based), DWDM gear, Datacom Routers, datacom Swtiches and such.
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My dad's Nokia made tyres and rubber boots, you insensitive clod!
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Even in your dad's time Nokia was making much more than cellphones