Facing continued pressure from weak telecom spending, Nokia is set to cut thousands more jobs as part of its ongoing cost-reduction program.
Around 4000 roles are still expected to be eliminated under the restructuring plan initiated by former CEO Pekka Lundmark. The company aims to significantly reduce costs while improving profitability in a challenging market environment.
The layoffs come amid a broader slowdown in 5G network spending, which has impacted major telecom equipment providers globally. Declining investments by telecom operators have reduced demand for network infrastructure, affecting both Nokia and rivals like Ericsson.
Nokia’s workforce has already seen a sharp decline over the years. From around 103000 employees in 2018, the company’s headcount dropped to about 75600 by the end of 2024. In 2025, the pace of layoffs slowed slightly, with around 1500 roles cut, bringing total headcount to roughly 74100.
Despite these reductions, job cuts are expected to continue as Nokia pushes toward its target of reducing overall costs. The company is aiming to cut up to 14000 jobs in total, which could bring its workforce closer to 70000 employees.
The pressure on Nokia has been compounded by declining market share in key regions such as China and North America, along with lower profitability in its mobile networks business. The company has also been restructuring its operations to eliminate overlaps and improve efficiency.
Industry trends show that global spending on radio access network (RAN) products has declined from $45 billion in 2022 to around $35 billion in 2024 and 2025, reflecting a sustained slowdown in 5G investments.
As the telecom market remains uncertain, Nokia’s ongoing restructuring highlights the broader challenges facing the sector, with companies focusing on cost control, efficiency and long-term sustainability.
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