Nokia set to Lay Off 14,000 Personnel Due to Shrinking 5G Demand

While Nokia is usually known for its mobile devices, the company also makes a ton of profit from providing networking solutions such as Wifi routers and 5G equipment. However, it looks like things haven't been so peachy lately for the Finnish telecommunications giant.

In what is essentially the latest entry in a series of massive tech layoffs, Nokia recently announced that it will terminate 14,000 jobs in a bid to cut costs, following a considerable 20% drop due to weakening demand for 5G equipment. The latter is attributed to a slowdown of demand from the North American market, although the company has also attempted to establish growth in other markets like India.

In an interview with Reuters, Nokia Chief Executive Pekka Lundmark explained the circumstances influencing this decision:

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.

Following this massive layoff, Nokia is hoping to save up to 800 million euros ($842 million) and 1.2 billion euros by 2026. This reduction in personnel is expected to bring down the company's employee base from 86,000 down to between 72,000 and 77,000.

Recently, chip manufacturer Qualcomm also announced that it will be terminating around 1,200 employees, due to "continued uncertainty in the macroeconomic and demand environment," according to the company.