Wedoany.com Report-Nov. 23, Nokia has announced further workforce adjustments in Europe as part of its ongoing cost-management program launched in 2023. In France, the company plans to reduce approximately 427 positions from its Paris-Saclay and Lannion sites, which together employ 2,380 people. The reductions are scheduled to take effect by the end of June 2026, subject to agreement with local unions and approval by French labour authorities.

Nokia stated: "As part of Nokia’s global cost-saving program announced in 2023, Nokia is planning to potentially reduce some staff in France by the end of Q2 2026, subject to agreement with French Unions, and validated by the French labour authorities. The measure is planned to be based on voluntary departures (Collective Conventional Break – CCB). Nokia will provide support to all affected employees through this transition."

In Germany, around 300 jobs are set to be eliminated this year at Nokia’s Munich facility, which currently has about 2,500 employees across the country. Reports indicate the Munich site, employing 700 people, may fully close before 2030.

The combined reductions in France and Germany represent a small fraction of Nokia’s global headcount, which stood at 76,000 at the end of last year before the recent acquisition of Infinera. The original 2023-2026 restructuring plan, announced under former CEO Pekka Lundmark, aimed to lower the total workforce to between 72,000 and 77,000 employees through the removal of 9,000 to 14,000 positions worldwide.

Current CEO Justin Hotard has continued the efficiency drive while implementing organisational changes, including the consolidation of support functions previously managed separately by each business group. These moves are intended to streamline operations and improve profitability following challenging market conditions in mobile networks.

Despite the European reductions, Nokia continues to invest in research and development. The company recently opened a new mobile technology centre in Oulu, Finland, and secured significant 5G contracts in the United Kingdom and Italy. Recent financial results show ongoing pressure on margins, partly due to integration costs from the Infinera acquisition and increased spending on optical technology development.

The telecommunications equipment sector has seen similar workforce optimisation efforts across multiple companies in recent years as firms adapt to slower-than-expected 5G investment cycles and focus on operational efficiency.