1,800 job losses as Nokia streamlines operations

10 Apr 2003

Nokia has announced plans to reduce its workforce by 1,800 as preliminary figures for the first quarter of 2003 show that it has made a substantial loss. The company has warned that pro-forma sales figures for this quarter could be 15%-20% lower than Q1 last year. Like its rivals, Nokia has suffered from an international slowdown in network infrastructure orders due to telecoms operators’ high debt levels and their reluctance to upgrade current networks. Nokia intends to reduce personnel by 1,100 in Finland, whilst the remaining 700 losses will affect its operations in other countries. At the end of 2002 the company had 17,500 employees, but in February announced 500 job cuts. Nokia is the world leader in handset sales with 40% of the market and hopes that these measures will boost profits for its network business, which currently accounts for 20% of sales.