Nokia to cut up to 14,000 jobs as US demand shrinks, growth uncertain, reports Reuters

STOCKHOLM/HELSINKI, Oct 19 (Reuters) – Nokia (NOKIA.HE) will cut up to 14,000 jobs to reduce costs, it said on Thursday, warning it did not expect a market recovery soon after posting a 20% drop in third-quarter sales on weaker demand for 5G equipment.

Shares in the Finnish company, which produces equipment for telecom networks, were down 2% at 0900 GMT.

A slowdown in the United States, home to Verizon (VZ.N) and AT&T (T.N), and one of the more profitable markets for Nokia and Ericsson (ERICb.ST) had forced them to look for growth in other regions such as India. But now India is also expected to normalize after a stellar 2022.

“The market situation is really challenging and it is witnessed by the fact that in our most important market, which is the North American market, our net sales are down 40% in Q3,” Chief Executive Pekka Lundmark told Reuters in an interview.

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