Nokia could cut up to 15,000 jobs

25 May 2016
00:00
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Nokia could cut as many as 15,000 jobs worldwide as part of the cost-cutting program associated with its merger with Alcatel-Lucent, union officials estimate.

Reuters qoutesa Nokia union steward as stating that based on the information received so far, the union estimates that the job cuts are likely to be around 10,000 to 15,000 jobs.

This would represent as much as 14% of Nokia's current global workforce of 104,000.

So far Nokia has revealed plans to cut around 1,000 jobs in its home market of Finland, 1,400 positions in Germany and 400 in France. But Nokia has also agreed to create 500 R&D jobs in France as part of its compromise to win French government support for the Alcatel-Lucent takeover.

A Nokia spokesperson declined to confirm or deny the figure to Reuters or give any updates on its negotiations with employee representatives. The company is conducting these negotiations in around 30 countries.

The cost cutting program has the aim of cutting operating costs by around €900 million ($1 billion)by 2018 by reducing the overlaps between Nokia and the former Alcatel-Lucent.

The program is also aimed at responding to the ongoing slowdown in the network infrastructure market. Nokia is forecasting a decline in network sales for the current financial year.

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