Nokia could cut 10,000-15,000 jobs worldwide: union

Tue May 24, 2016 8:55am EDT
 
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By Jussi Rosendahl

HELSINKI (Reuters) - Telecom network equipment maker Nokia (NOKIA.HE: Quote) is likely to cut 10,000 to 15,000 jobs globally - far more than it has announced so far - after its acquisition of Franco-American rival Alcatel-Lucent ALUA.PA, a Finnish union representative said.

The company has announced plans for around 2,400 job cuts in Finland and Germany as part of a cost-cutting program but has not so far given a global figure.

Cuts on the scale estimated by the union would represent as much as 14 percent of Nokia's worldwide work force of 104,000.

Nokia kicked off the rationalization program in April with a target to slash 900 million euros ($1 billion) of operating costs by 2018.

"We haven't heard any official numbers, but based on the information from our union contacts, I would estimate the global impact of this round would likely be around 10,000 to 15,000 jobs," said Risto Lehtilahti, a trade union shop steward at Nokia's Oulu site.

A Nokia spokeswoman declined comment on the figure.

Analysts and union representatives said that the company will likely follow up with a new round of cuts once the current one is finished.

"Nokia and Alcatel have lots of overlaps, so the numbers will go up and the range could be something like that (10,000-15,000)," said Hannu Rauhala, analyst at OP Equities.   Continued...

 
The Nokia headquarters is seen in Espoo, Finland April 6, 2016.  REUTERS/Antti Aimo-Koivisto/Lehtikuva/File Photo