 "Nokia C12")
By Rafaela Lindeberg
Nokia Oyj to cut up to 14,000 jobs as reduced investment in fifth-generation mobile infrastructure from US and European operators weighs on the company.
That represent a 10% to 15% reduction in personnel expenses and is expected to save as much as €400 million ($421 million) next year and an additional €300 million in 2025, the Espoo, Finland-based mobile network company said in a statement Thursday.
Nokia also posted weaker than expected earnings on Thursday in a separate statement.
Adjusted operating profit was €424 million ($467 million) in the third quarter, according to a statement. That compares to an average analyst estimate of €545.2 million, according to a Bloomberg survey.
Adjusted earnings per share came to 5 cents, less than the 7 cents estimated by analysts.
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“We are tracking towards the lower end of our net sales range for 2023 and towards the mid-point of our comparable operating margin range,” Chief Executive Officer Pekka Lundmark said in the statement. He had previously painted a gloomy picture for the second half of the year when the company downgraded the full-year guidance in July.
After the second quarter, Nokia cut its full-year guidance for sales to €23.2 billion to €24.6 billion, with a comparable operating margin in a range of 11.5% to 13%. The top end of that range had previously been seen at 14%.
Makers of 5G equipment are struggling as operators in the US and the European Union seek to cut capital expenditures and adjust their inventories. Swedish rival Ericsson AB delivered a disappointing outlook this week, saying market weakness will persist into the fourth quarter and beyond.
