Nokia’s results were below expectations. In the third quarter, the company’s operational profit was $467 million. The adjusted earnings per share was 5 cents, which was lower than the analysts’ projected 7 cents
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The Finnish telecom equipment manufacturer Nokia has reportedly announced that, as part of a new cost-cutting strategy, it will eliminate up to 14,000 positions. The company’s third-quarter sales fell 20% as a result of the sluggish sales of 5G equipment in regions like America.
In order to achieve an operating margin objective of at least 14% by 2026, Nokia is aiming to save between 800 million and 1.2 billion euros in costs, according to a report.
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Compared to Nokia’s current workforce of 86,000, the business now aims to cut down the workforce to 72,000–77,000.
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Nokia’s results were below expectations. In the third quarter, the company’s operational profit was $467 million. The adjusted earnings per share was 5 cents, which was lower than the analysts’ projected 7 cents.
Nokia reduced its sales projection for the entire year from 23.2 billion euros to 24.6 billion euros after the second quarter, with a corresponding operating margin of 11.5% to 13%. The upper limit of that range was seen at 14% in the past.
Manufacturers of 5G equipment are having difficulty as US and EU operators try to reduce capital expenditures and make inventory adjustments.
Nokia intends to relocate to a more compact corporate headquarters that will offer strategic direction and control, safeguard research and development expenditures, and grant greater operational independence to its business groups.
In the meantime, the new Nokia logo was shown before to GSMA 2023 and the Mobile World Congress (MWC) on Thursday in Barcelona.
Manufacturers of 5G equipment are having difficulty as US and EU operators try to reduce capital expenditures and make inventory adjustments. As the Swedish rival Ericsson AB struggles to compete with US and European operators who are investing less in fifth-generation mobile infrastructure, the company’s shares sank to their lowest level in six years after the business stated that the market downturn will continue into the fourth quarter and beyond.
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