Nokia has announced sweeping job losses as the consequence of its acquisition of Alcatel Lucent.
The scale of the job cuts has not been confirmed yet though.
The company aims to cut EUR 900 million from its costs, to be achieved in full year 2018. At the same time, Nokia is taking steps to adapt to market conditions and to shift resources to future-oriented technologies such as 5G. As part of the program, the company also continues to target worldwide savings in real estate, services, procurement, supply chain and manufacturing.
The headcount reductions are expected to take place between now and the end of 2018. Reductions will come largely in areas where there are overlaps, such as research and development, regional and sales organizations as well as corporate functions.
Nokia outlined these areas on October 29, 2015, when updating its synergy target.
“These actions are designed to ensure that Nokia remains a strong industry leader,” said Nokia President and CEO Rajeev Suri.
“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. We also know that our actions will have real human consequences and, given this, we will proceed in a way that that is consistent with our company values and provide transition and other support to the impacted employees.”
