Nokia to Cut Thousands of Jobs as Net Profit Drops 45%
19 Outubro 2023 - 3:21AM
Dow Jones News
By Dominic Chopping
Nokia launched a plan to cut thousands of jobs as it seeks to
save up to 1.2 billion euros ($1.26 billion) as its net profit
dropped in the third quarter.
The Finnish telecommunications company posted a 45% fall in its
third-quarter comparable net profit as macroeconomic challenges
ramped up, weighing on customer spending.
The company said on Thursday that sales at its network
infrastructure business fell 14% due to weaker spending while
mobile networks sales fell 19% as it saw some moderation in the
pace of 5G deployment in India, which meant the growth there was no
longer enough to offset the slowdown in North America.
Nokia said it targets between EUR800 million and EUR1.2 billion
in cost savings by 2026 to keep it on track to deliver its
long-term target comparable operating margin of at least 14% by
2026.
Nokia will cut between 9,000 and 14,000 jobs from its total
workforce of 86,000.
The company backed its sales and comparable operating margin
targets but it is now tracking toward the lower end of the sales
range and toward the mid-point of the operating margin range.
Comparable net profit for the quarter fell to EUR304 million
from EUR550 million a year earlier as sales fell 20% to EUR4.98
billion, it said.
Analysts polled by FactSet had expected comparable net profit of
EUR399 million on sales of EUR5.67 billion.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 19, 2023 02:06 ET (06:06 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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