Nokia likely to cut 2,000 jobs in India

Finnish telecom gear maker Nokia has started a retrenchment drive for its India operations, as part of the global restructuring plan wherein it plans to shed about 11% of its workforce. As per industry sources, 10-15% of the staff in India will be impacted, meaning job losses to the tune of 1,500-2,000.

The sources added that the job losses will be across all divisions and 10% people have already been shortlisted for the cuts.

Of all the countries it operates in, Nokia employs the highest number of people in India. The company has its global network operating center (NOC) in Noida, an R&D centre in Bengaluru, a manufacturing unit in Chennai, and the India head office in Gurgaon. As per estimates, the company has over 16,000 employees in the country.

“While it is too early in the process to confirm the exact numbers per country, the number speculated in the press is much higher than what we anticipate,” Nokia said in a statement to FE.

Nokia has embarked on a cost-cutting drive after lagging behind peers in the 5G race. Despite Huawei facing global scrutiny, Nokia failed to capitalise on the gains even as rival European counterpart Ericsson cemented its position. Nokia has recently announced a €600-million cost-cutting plan through which it will let go 10,000 people globally.

When it comes to India, the revenue potential from 5G is still some time away. Nokia can hope to grab a contract from state-run BSNL in case the government allows participation of global firms.