Nokia on Tuesday announced plans to cut up to 10,000 jobs within two years to trim costs and invest more in research capabilities, as the Finnish telecoms group seeks to step up its challenge to Sweden's Ericsson and China's Huawei.
Lundmark is expected to present his long-term strategy, discuss action plans and set financial targets during the company's capital markets day on Thursday. Nokia currently has 90,000 employees, and has cut thousands of jobs following its acquisition of Alcatel-Lucent in 2016. It expects the current restructuring to lower its cost base by about €600 million by the end of 2023. Half of the savings are expected to be realised in 2021.
The savings programme is bigger than expected but what is interesting is that it will not actually result in lower costs, said Sami Sarkamies, an analyst with Nordea. Under Lundmark's predecessor, Nokia had slashed its profit outlook and halted dividend payouts, after product missteps knocked more than a fifth off its market value.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.