Nokia Plans to Cut 600 Jobs
Finnish telecommunications firm Nokia has announced that it plans to cut nearly 600 jobs of its employees in France in a bid to save the company from its loss-making businesses.
The group said it planned to reduce its headcount in France by 597, a little over 10 percent of its total workforce in the country, with French trade unions calling the move “unacceptable” as the move will affects one-in-nine of Nokia employees in the country.
The company, which no longer makes handsets having sold that business to Microsoft, bought French-American telecoms equipment maker Alcatel-Lucent in 2015 in a deal that worth 15.6 billion euros. At the time of the acquisition Nokia vowed not to cut French jobs for two years after the closure of the deal, beyond what Alcatel had already planned.
The cuts in France will be focused on administrative and support services and will not effect research and development as it refocuses on high-speed 5G telecom networks, cybersecurity and internet-linked appliances, the group said.
Nokia is aiming to make 1.2 billion euros (1.4 billion dollars) in total cost savings by the end of 2018 following net losses of 766 million euros last year.