Nokia are expected to save around EUR 600 million as a result of the restructuring.
Nokia, the Finnish telecoms company, said on Tuesday that as part of its restructuring plan, it plans to cut up to 10,000 jobs over the next two years to cut costs and invest more in research capabilities.
Following his appointment as CEO last year, Pekka Lundmark has been making changes to the business in order to better compete with Nordic rival Ericsson.
Nokia will have four business groups under its new strategy, which he revealed in October, and he said the company would "do whatever it takes" to take the lead in 5G, as it hopes to gain market share from Huawei.
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During the company's capital markets day on Thursday, Lundmark is expected to present his long-term strategy, discuss action plans, and set financial targets.
By 2023, the company expects restructuring and related charges of between EUR 600 million (roughly Rs. 5,190 crore) and EUR 700 million (roughly Rs. 6,060 crore), according to a statement.
In a statement, Lundmark said, "Decisions that may have a potential effect on our workers are never taken lightly." "My top priority is to make sure that everyone who is affected by this process is supported."
By the end of 2023, Nokia expects the restructuring to save the company about EUR 600 million (roughly Rs. 5,190 crore). In 2021, half of the savings should be realized.
While both Nokia and Ericsson have been acquiring customers as more telecom operators roll out 5G networks, Ericsson has a slight advantage thanks to 5G radio contracts it has won in China.
Nokia has yet to win a 5G radio contract in China, and it has also lost a good portion of a contract to provide 5G equipment to Verizon to Samsung Electronics.
According to the firm, the savings acquired will be used to offset increased investments in R&D and future capabilities, as well as costs associated with salary inflation.
Nokia expected that revenue in 2021 would fall between EUR 20.6 billion (roughly Rs. 1,78,300 crore) and EUR 21.8 billion, down from EUR 21.9 billion (roughly Rs. 1,89,520 crore) in 2020. (roughly Rs. 188,680 crore).
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