Nokia Oyj will eliminate up to 14% of its current workforce cutting different jobs around the world as part of its plan to save over $1 billion annually after its merger with Alcatel-Lucent SA a rival in networking hardware.
The company has prepared to cut between 10,000 and 15,000 positions from a combined workforce of 104,000. Close to 1,300 jobs would be eliminated in Finland and in all approximately 30 countries will be affected. Over 1,300 will be eliminated in Germany as well.
Union officials have braced for these cuts since 2015, when Rajeev Suri the CEO set a goal of reducing yearly operating costs by over $1.02 billion, by 2018 through reducing overlapping services, products and sales positions following the takeover of $18 billion.
Earlier he had revived the struggling networks business at Nokia by slashing its costs and through focusing on more lucrative service and equipment contracts.
Suri discussed moves with representatives from the union Wednesday. The company is meeting with workers in over two dozen nations in the upcoming weeks said the Nokia statement.
Nokia has made a comeback from losses incurred earlier on the cuts. The stock increased 0.7% on Wednesday morning, which gave the company a value of more than 30 billion euros.
The job reductions also have a goal of helping Nokia cope with the challenging environment for business in 2016 and the intense competition from Huawei Technologies from China.