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.
After taking over the top job last year, Chief Executive Pekka Lundmark has been making changes to recover from product missteps under the company’s previous management that hurt its 5G ambitions and dragged on its shares.
He announced a new strategy in October, under which Nokia will have four business groups and said the company would “do whatever it takes” to take the lead in 5G, as it banks on also capturing share from 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.
The company said in a statement it expects about 600 million euros ($715 million) to 700 million euros of restructuring and associated charges by 2023.