Nokia moves to cut jobs following Alcatel-Lucent merger
Some 1,300 jobs are to go in Finland, 20 percent of its workforce there, but Nokia gave no figures for the rest of the world.
“The headcount reductions are expected to take place between now and the end of 2018,” Nokia said in a statement.
“Reductions will come largely in areas where there are overlaps, such as research and development, regional and sales organisations as well as corporate functions,” it said.
Nokia is targeting 900 million euros ($1.02 billion) of savings per year starting in 2018.
“When we announced the acquisition of Alcatel-Lucent we made a commitment to deliver EUR 900 million in synergies — and that commitment has not changed,” chief executive Rajeev Suri said in the statement.
Nokia has just gone through two and half years of radical transformation. In 2013 it bought 50 percent of its network activities from Germany’s Siemens, in 2014 it divested its mobile phone business where it had been the world’s number one brand, and in 2015 it sold its mapping unit Here and took control of Alcatel-Lucent.
In 2015, Nokia’s net profit fell by 29 percent to 2.45 billion euros ($2.8 billion), it reported in February.
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