Nokia, the Finnish telecommunications giant, has announced significant job cuts as part of its ongoing efforts to reduce costs and improve profitability. According to sources familiar with the matter, the company plans to lay off approximately 2,000 employees in Greater China, which constitutes about a fifth of its workforce in the region. Additionally, Nokia is set to cut 350 jobs across Europe. These measures are part of a broader strategy to save between 800 million euros and 1.2 billion euros by 2026.

The company had previously outlined plans to reduce its global workforce by up to 14,000 positions. As of December 2023, Nokia employed 10,400 people in Greater China and 37,400 in Europe. The recent cuts are included in the previously announced figures, with the company having already achieved 500 million euros in gross savings. Despite these reductions, Nokia's CEO, Pekka Lundmark, assured that the company is not compromising its research and development output.

Nokia's third-quarter operating profit saw a 9% increase, largely attributed to these cost-cutting measures. However, the company's net sales fell short of expectations, resulting in a 4% drop in its share price. Currently, Nokia employs just over 78,500 people globally, down from its previous total of approximately 86,000 employees.

These job cuts reflect Nokia's strategic focus on maintaining financial health while navigating the competitive telecommunications landscape. The company remains committed to its long-term goals, including advancements in emerging technologies such as AI and 5G.