The company reported a 20% decline in its year-on-year net sales. It pinned the lacklustre performance on a decrease in demand for 5G gadgets, especially among US customers. Ericsson, an industry competitor, reported the same sales problem and listed it as one of the reasons for its recent job cuts.

The report indicated that planned dismissals would save the company approximately €1.2bn by 2026. Nokia Plans to trim head office positions but affirmed its financial commitment to research and development.

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When approached by Sky News Business, Nokia declined to comment on whether the layoffs will affect workers in the UK. Most of the UK-based jobs relate to research and development. In its preliminary Q3 report, the company noted:

Our third quarter performance demonstrated resilience in our operating margin despite the impact of the weaker environment on our net sales. In the last three years we have invested heavily to strengthen our technology leadership across the business giving us a firm foundation to weather this period of market weakness.

Although Nokia confirmed its continued belief in mid to long-term viability and the significant resources needed to stay on top of cloud computing and AI developments, it also feels market recovery is crucial. The firm said it is making these strategic, operational, and cost decisions to bolster itself and add value to shareholders.

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