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.
Manchester City (0) v Liverpool (3)
Uefa Champions League, quarter-final, second leg
Where: Etihad Stadium
When: Tuesday, 10.45pm
Live on beIN Sports HD
Getting there
The flights
Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.
The stay
Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.
Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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EMIRATES'S%20REVISED%20A350%20DEPLOYMENT%20SCHEDULE
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Company%20profile
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What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
