According to HS’s sources, the changes to Nokia’s organization and approach, designed by Justin Hotard, have caused anxiety in the company.
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Nokia is preparing to reduce thousands of jobs to improve its profitability, says HS sources.
The new CEO Justin Hotard is planning changes to the company’s organization and approach, which has caused unrest among staff.
Nokia strives to reduce its dependence on telecom operators and acquire customers from other companies such as data centers and industry.
Network devices Nokia, a manufacturer, is preparing for thousands of jobs, says the sources of Helsingin Sanomat.
With the reductions, the company aims to secure its profitability, as these prospects are expected to grow subdued this year. In addition, profitability is sometimes burdened by harsh price competition.
These are preliminary plans that may change. The company refused to comment on the information obtained by Helsingin Sanomat.
“Nokia does not comment on market rumors,” the statement says.
Last In Nokia, an average of 78,400 employees employed. In Finland, the company employs 6,600 people. Most of the planned deductions would target abroad.
Already in October 2023, Nokia announced his major savings plan. At that time, the company employed 86,000 employees.
EUR 800 and EUR 200 million will be eliminated by the end of next year. This would mean 9,000-14,000 jobs deductible around the world. The aim is to have 72,000-77,000 employees at the end of next year.
It is complicated by the fact that at the beginning of the year, about 3,000 employees were transferred to Nokia as a result of the Infinera business trade.
The interim report published in April was also unexpectedly removed from the table, which previously described the progress of the savings target.
Last In Nokia’s net sales, nine per cent decreased to EUR 19.2 billion. On the other hand, adjusted operating profit increased by 12 % to EUR 2.6 billion thanks to the harsh expense and better products.
Nokia has hinted that this year’s turnover will finally increase. The same has been hinted at by Swedish competitor Ericsson, albeit a little more cautiously.
Just over a year ago, Nokia stopped publishing her turnover target. Currently, it reports its adjusted operating profit target of EUR 1.9-2.4 billion this year.
According to those who are aware, it will be difficult to achieve it.
Justin Hotard spoke to the media in early February in Espoo after his choice was announced for Nokia’s leadership.
April At the beginning as a CEO Justin Hotard It also plans changes in Nokia’s organization and approach. According to the sources of Helsingin Sanomat, the plans have caused anxiety in the company. This is not uncommon when the new CEO begins to renew the company.
A week ago, Nokia announced the Director of the Network Infrastructure Business Team Federico Guillénin out of departure. Guillén was replaced by the CEO of Infinera, which is acquired by Nokia in the early part of the year David Heard. He will start as a member of the management team in early July.
The surprise in Nokia has also aroused the “Chancellor of CEO” CEO Victoria Hanrahan Appointment as a member of the management team. Those who previously performed a similar task were not members of the management team.
According to Helsingin Sanomat, the Human Resources Director is leaving the Nokia Management Team Lorna gibb, But the company has not yet announced it. More changes are also expected for the management team.
In Nokia It is also feared that CEO Hotard will make the company’s operating method more central. His predecessor Pekka Lundmark During the CEO, each of the four business groups acted in responsibility and very independently.
Lundmark stopped central management and unnecessary lack of leadership. In many US companies, the CEO often strives to keep all the threads in their hands.
Fact
Nokia’s four business groups
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Mobile networks are Nokia’s largest business team. At the center of its business are wireless transmission networks, which are radio networks and microwave radio links.
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The online infrastructure is the company’s second largest business team. It focuses on fixed transmission networks, which include IP routers, optical network devices and fixed broadband networks.
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Cloud and online services are specialized in nuclear networks, online software and cloud services.
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The technology unit licensed Nokia’s patented inventions and brand.
Managing director One of the most important tasks of Hotard is to reduce Nokia’s dependence on telecom operators.
This means that Nokia strives to acquire more and more companies other than telecom operators and sell their products to data centers, industrial companies, the use of artificial intelligence and the defense industry.
On the other hand, Nokia has recently done fairly well in cellular networks, the main telecommunications operators. For example, US telecom operator T-Mobile has said that he is very pleased with Nokia’s products and operating method.
The only problem is that the mobile phone markets are still growing slowly. In particular, the business of the online infrastructure has developed positively and the Infinera trade is likely to accelerate its growth.