Nokia announced plans to cut thousands of jobs globally including a reported 1,300 positions in its homeland of Finland as part of an effort to save more than $1 billion in the wake of its recent acquisition of Alcatel-Lucent.
The network equipment company said it's "taking steps to adapt to challenging market conditions and to shift resources to future-oriented technologies" as it continues its transition to focus on developing equipment for mobile networks and Internet gear. The layoffs will take place by the end of 2018 and will include segments "where there are overlaps" between the two businesses including research and development, regional and sales organizations and corporate functions.
Meanwhile, the company said it will continue to trim costs in real estate, services, procurement, supply chain and manufacturing.
"When we announced the acquisition of Alcatel-Lucent we made a commitment to deliver EUR 900 million ($1.02 billion) in synergies -- and that commitment has not changed," CEO Rajeev Suri said in a prepared statement.
While Nokia's announcement included few details regarding the layoffs, The Wall Street Journal reported it would shed 1,400 of its 4,800 positions in Germany. Only 400 jobs will be cut in France, while Nokia will recruit 500 workers in research in development there in accordance with an agreement the company struck with the French government to maintain jobs in the country for two years following the acquisition.
Nokia said the job-cutting process started today with meetings with the company's two European Works Councils, and will continue with similar meetings in nearly 30 countries in the coming weeks. "Processes and timelines will vary from one country to another," it said.
Suri said in February that synergies were "happening faster than expected" as the two companies integrated their businesses. "I have seen almost none of the organization angst and in-fighting that have dragged down earlier transactions," he said at the time.
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