Nokia to cut up to 14,000 jobs after sales drop by a fifth

Stockholm: Finnish telecom gear group Nokia said on Thursday it would cut up to 14,000 jobs in a new cost reduction effort after third-quarter sales fell by a fifth, taken down by sales of next-generation 5G equipment.

Nokia and rival Ericsson have grappled with slowing demand for 5G equipment in countries such as the United States, trying to offset some of the weakness with higher sales to India, a low-margin market.

Nokia is targeting savings of between 800 million euros ($842 million) and 1.2 billion euros by 2026, the deadline by which it seeks to deliver a long-term comparable operating margin plan of at least 14 per cent.