According to the Times of India, Nokia is planning to lay off 20% of its workforce, or more than 14000 employees. So, what should you know about it?
AI is not the main factor behind this decision
For your information, the drastic move is part of a phased restructuring to reduce operating costs and improve profitability by 2026. The main factor is not the use of artificial intelligence (AI), which is often used as a reason for laying off workers. Rather, weak 5G demand, slow network rollouts, and intense competition in the telecommunications sector are the main reasons.
Last year, CEO Justin Hotard announced that Nokia would be separated into a network infrastructure business offering AI and data centre services, while the telecom network operations business would become a mobile infrastructure unit.
Moreover, Nokia Defence was also launched, offering Nokia's network and mobile technologies for military-grade services. Non-core businesses are being reviewed for potential sale to streamline the company's focus.
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