March 30, 2026 – Global telecommunications behemoth Nokia has unveiled a major job – cutting initiative. The company announced that it will slash approximately 4,100 jobs globally in 2026.
As part of its ongoing optimization and restructuring efforts, Nokia’s total workforce is set to shrink from 74,100 at the end of 2025 to 70,000. This move is expected to lead to a cumulative cost reduction of 1.2 billion euros. The primary goal is to counter the downward pressure in the telecommunications industry and enhance overall operational efficiency.
The root cause of this round of layoffs lies in the persistent chill in the global telecommunications market. The growth rate of operators’ investment in 5G networks has slowed down significantly, and the wireless access network market has been shrinking for several consecutive years.
Moreover, Nokia has been losing market share in key regions such as North America and China. As a result, the operating profit margin of its mobile network business has plummeted to a record low, putting its profitability under severe strain and directly triggering the layoffs.
Faced with the dual challenges of intensified external competition and internal profitability woes, Nokia has been forced to speed up its organizational restructuring. In addition to downsizing its workforce, the company plans to shut down its R & D facility in Munich, Germany, and optimize its business layout in Europe. It will also shift its core resources away from traditional mobile network businesses and towards high – growth areas such as cloud computing and enterprise solutions, in an attempt to reduce its over – reliance on traditional telecom equipment businesses.
