When companies across the globe tighten their belts, 'layoffs' then becomes a common term as well as tool for cutting costs, leaving many individuals losing their bread and butter.
As part of the same, recently as per the report of Reuters citing sources familiar with the matter, the Finland-based telecommunication giant, Nokia, has announced a significant job cut as a piece of its global cost-cutting measures.
As per the report, the company is facing several challenges in the market and is laying off around 2,000 positions in Greater China, alongside an additional 350 job cuts across Europe.
The move also comes as a part of the company's previously stated goal to reduce up to 14,000 jobs, a plan that was revealed last year to save between 800 million euros ($868 million) and 1.2 billion euros by 2026, added the report.
China: From Key Market to Shrinking Sales
China which once played a key market for the company, has seen a dramatic decline in its importance to the company.
According to Reuters, Nokia’s workforce in Greater China totalled 10,400 employees, but with the latest round of layoffs, that number is set to drop sharply.
File image/ Representative image
Furthermore, the report added that in the year 2019, the net sales in China accounted for 27 per cent, which was then a source revenue for the company. However, the landscape shifted following the U.S. ban on Chinese telecom firms like Huawei and ZTE.
In retaliation, Chinese companies reduced their contracts with foreign suppliers like Nokia and Ericsson. By the previous quarter, China’s contribution to Nokia’s sales had plummeted to just 6 per cent, illustrating the challenges Nokia now faces in this market, added the report.
