Number of Irish employees at risk as Nokia cuts 14,000 jobs globally
Currently, Nokia expects at least €400m of savings in 2024, and a further €300m euros in 2025.
A number of jobs across Nokia's Irish operations are at risk following plans by the company to slash 14,000 roles across its global operations.
On Thursday, the Finnish company said it did not expect a market recovery soon after posting a 20% drop in third-quarter sales following weaker demand for 5G equipment.
"The market situation is really challenging," said Nokia CEO Pekka Lundmark. "In our most important market, the North American market, our net sales are down 40% in Q3."
According to its most recent financial statement filed to the Company Registration Office, Nokia Ireland, which is based in Snugborough Industrial Estate in Blanchardstown, recorded more than 100 employees, which according to the Irish arm, has decreased in recent years in accordance with restructuring plans across the wider Nokia Group.
Speaking to the Irish Examiner, a spokesperson for Nokia said, "The most difficult business decisions to make are the ones that impact our people."
"Resetting the cost-base is a necessary step to adjust to market uncertainty and protect our long-term profitability and competitiveness."
Nokia is targeting savings of between €800m and €1.2bn by 2026. It expects to reduce its employee base to between 72,000 and 77,000 employees, from 86,000, or about 16% job cuts at the high end.
"We are now beginning the process of consultation on initial reductions," the spokesperson continued. The program to lower cost base is a 3 year program and the timing and detail of final reductions will be decided only after careful consideration."
Chief executive, Lundmark declined to give more details saying the company must consult first with employee representatives. However, he said he wanted to protect research and development.
Currently, Nokia expects at least €400m of savings in 2024, and a further €300m euros in 2025. The company maintained its full-year guidance for sales to €23.2bn to €24.6bn, with a comparable operating margin in a range of 11.5% to 13%.
