Unlike Swedish rival Ericsson, Nokia does not disclose the number of employees in its quarterly financial statements. Last year, the company managed to hide the reason for the reduction in labor costs by 500 million euros. However, from the latest annual report released by Nokia, it became known that the company cut almost 5,000 employees in 2019. An additional 6,000 workers were laid off in 2020.
The report shows that the company cut 11,044 employees in two years. As a result, the total number of Nokia employees in 2020 was 92,039 people. Thus, the company’s staff decreased by 11% in two years, which hardly signals anything good. Regional analysis shows that the largest number of layoffs occurred in the Chinese divisions of Nokia. Last year alone, the number of company employees in the Middle Kingdom decreased by 12% to 13,749 people. This is almost 3,500 fewer workers than in 2018. The company’s workforce in the Americas declined 9% in 2020.
It is important to note that Nokia did not mention layoffs in the report. Instead, the company gave a rather vague wording: “In recent years, as we have adjusted our strategy in accordance with business goals and areas of activity, the number of our employees has fluctuated.”… Among other things, it is worrying that Nokia’s latest savings plan has resulted in significant cuts in research and development costs. After about 4.5 billion euros were invested in this direction, the budget was cut by 450 million euros last year. In addition, Nokia does not have the best prospects in the 5G market, and investors fear that the company may lose competitiveness. It is also worth noting that the company’s net losses over the past three years have exceeded 3 billion euros.
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