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Nokia will cut up to 10,000 jobs to increase R & D in the 5G race

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HELSINKI (AP) – Nokia, a wireless network maker, says it plans to cut up to 10,000 jobs, or more than 10% of its staff, to cut costs as it invests in research and development. its role as a major supplier of 5G. technology:

The reshuffle means that the number of staff is projected to be reduced to 80,000-85,000 in two years, Nokia said on Tuesday. It should cut spending by $ 600 million ($ 715 million) by 2023.

The Finnish company did not name the countries or geographical areas affected by the event, but said the cuts would be made in its four main business units.

“Decisions that may potentially affect our employees are never taken lightly,” said Pekka Lundmark, CEO of Nokia. “Ensuring that we have the right structure and capabilities is a necessary step in ensuring sustainable long-term performance.”

The company, based in Espoo, Finland, said the expected savings “would offset growing investment in research, future opportunities and rising costs of wage inflation.”

In addition to investing in 5G, a new generation of broadband technology where Nokia competes with China’s Huawei i Sweden’s Ericsson and more recently with South Korea’s Samsung, Nokia has said it will invest in cloud computing. in digital infrastructure.

“In the areas where we prefer to compete, we will play to win. “Consequently, we increase product quality, cost competitiveness, investment in the right skills, capacity,” Lundmark said.

On Monday, Nokia announced separate partnerships with Amazon, Google, and Microsoft to develop cloud-based 5G solutions for businesses.

In the 1990s, Lundmark, the company’s former chief executive, topped Nokia in August, saying he aimed to make Nokia the leader in 5G, even at the expense of the company’s profitability in the short term. In six months, he changed the company’s strategy and organization.

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