The Finnish telecoms equipment maker Nokia will cut 14,000 jobs, or 16 per cent of its global workforce, following a 20 per cent slump in third-quarter sales.
The company announced on Thursday it needed to cut costs in the face of slowing demand for next-generation 5G equipment in countries such as the United States, which was no longer being offset by fast-growing markets like India.
Nokia is aiming to make savings of between €800 million ($842 million) and €1.2 billion by 2026 to achieve operating margins of at least 14 per cent.
Nokia, which currently has about 86,000 employees, posted third-quarter sales of €4.98 billion, a 20 per cent drop on the same period last year. That produced a third-quarter profit of €133 million, a 69 per cent fall compared to the third quarter of 2022.
"The earnings were much weaker than expected and the outlook is more uncertain. So it's not looking that good in the short term for Nokia," Atte Riikola, an analyst at Inderes.
'Ongoing uncertainty'
Nokia's president and chief executive Pekka Lundmark said even though the sales figures had been "impacted by the ongoing uncertainty", the company expected "a more normal seasonal improvement in our network businesses in the fourth quarter".
"Resetting the cost base is a necessary step to adjust to market uncertainty and to secure our long-term profitability and competitiveness," he added.
Nokia is not alone in experiencing a reduction in demand for advanced telecoms equipment, as tougher trading conditions have forced mobile operators to scale back their 5G plans in several markets.
Swedish rival Ericsson has also laid off thousands of workers this year and this week said the uncertainty affecting its business would persist into next year.
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Comment on Coronavirus
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
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The specS: 2018 Toyota Camry
Price: base / as tested: Dh91,000 / Dh114,000
Engine: 3.5-litre V6
Gearbox: Eight-speed automatic
Power: 298hp @ 6,600rpm
Torque: 356Nm @ 4,700rpm
Fuel economy, combined: 7.0L / 100km
