European telecommunications giant Nokia (NOK) has announced 14,000 job cuts worldwide as it reported a 69% plunge in its third-quarter profits.
The company, which is headquartered in Finland, said that it is undertaking an aggressive cost-cutting plan to increase its operational efficiencies amid a challenging market.
To that end, Nokia is reducing its global workforce to 72,000 employees from 86,000 currently.
The layoffs were announced as Nokia reported a 20% year-over-year decline in its Q3 net sales, and a 69% plunge in its profit over the period.
One of the world’s biggest telecommunications equipment makers, Nokia is struggling with a slowing global economy and a decrease in infrastructure spending among mobile phone operators.
Sales from Nokia’s biggest unit by revenue, its mobile networks business, fell 24% year-over-year in Q3, while operating profits for the division dropped 64% from 2022 levels.
Nokia’s stock has declined 26% over the last 12 months. At $3.39 U.S. per share, it trades on the penny stock league tables.
