Nokia Prepares for New Projects by Restructuring Company

Nokia is planning on a company restructuring. The Finnish telecommunications group will be cutting around 11% of its workforce in the next 18 to 24 months span. The restructuring is a way for Nokia to repress its cost base and further help develop its 5G network business.

Cutting cost, Nokia opts for company restructuring

With 11% of its workforce cut from the company, Nokia is expected to lose around 5,000 to 10,000 employees. The whole restructuring will cost Nokia over €600 million ($715.7 million). The company looks to finish half of it in 2021.

Quoted from CNN, Nokia’s official stated, “This is expected to lower the company’s cost base by approximately €600 million ($715.7 million) by the end of 2023. These savings will offset increased investments in [research and development], future capabilities and costs related to salary inflation”.

Nokia plans to aim at domestic market with 5G

Additionally, Nokia’s spokesperson told CNN that the company is still looking forward to recruiting 5G for the domestic market. The spokesperson elaborated, “In Finland, we have hired more people than we have reduced during the past two years, and we expect the impact of these planned changes announced today to be net positive”.

Nokia’s focus on the 5G network is an attempt to keep its relevancy among rivals Huawei and Ericsson. On Monday, Nokia announced its affiliation with Amazon Web Services and Google Cloud. The companies involved in the partnership will be developing new applications for the technology together.

Not only Amazon and Google, Nokia also recruited Microsoft and NASA in the team. Microsoft will be responsible for building cloud solutions for business. Meanwhile, Nokia is looking forward to putting a 4G network on the moon through its partnership with NASA.

Nokia might be in the upper hand in the competition. Last year, the United Kingdom banned Huawei from its 5G telecom network. Nokia itself is confident that the company is capable to replace all of the Huawei equipment in UK networks, both “at scale and speed”.