Nokia Oyj (NYSE:NOK) Reveals Plans To Lay Off Workers

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Nokia Oyj (NYSE:NOK) is company that provides fixed and mobile networks to its customers around the globe. Its headquarters are in Finland where it pays a huge deal of focus to software development. The business guru says it will implement its plan of cutting down on jobs.

A close look

As a matter of fact, the shift to 5G is a major move. Market observers from around the globe have applauded the new initiative. The company admits that the shift to 5G pulls along with various benefits. Contrary to the thoughts of many, the business guru insists that reducing the number of workers is inevitable. Nokia says it has to do it as part of its preparations for a new era.

It goes without saying that the industry has over the years anticipated the current moment. The unveiling of 5G is indeed a step towards the right direction. People from around the globe seek to use superfast wireless networks. To them, superfast business transactions facilitated by the top-notch networks translate to generation of more profits.

Analysts agree with the company on its decision. According to them, restructuring is important for any progressive business that needs to maximize its profits.

The company’s perspective

The business guru says the move will help it save up to $800 million. Nokia hasn’t yet broken down the actual number of workers it intends to lay off. However, from the estimates, thousands will lose their jobs.

The company says that the latest move is going to affect all its offices from around the world. To fill the void, the business guru intends to resort to automation in undertaking a great deal of its business operations. Asides from that, it also seeks to invest much more in research and development.

CEO Rajeev Suri, the company’s CEO opined, “On the enterprise side, our strategy has been to target high-growth, high-margin opportunities with a limited set of companies needing telco-grade networks. Our strong results to date have validated this approach.”

The company outlines that the move to downsize its workforce isn’t a new experience for it and hopes to get by successfully.

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