Nokia seeks to invest more in 5G, cuts 180 jobs in Finland

Nokia looks to restore investor confidence following concerns that it is lagging behind peers Ericsson and Huawei in 5G development

                                

Nokia has said it plans to cut around 180 jobs in its home country, Finland, this year, as part of restructuring efforts which include plans to invest more heavily in 5G technology and digitalisation.

The company looks to restore investor confidence following concerns that it is behind its peers Ericsson and Huawei in 5G development.

Nokia cut its outlook for 2019 and 2020 in October, saying that it needed to increase its investments in 5G. This resulted in a loss of a third of the value of its share price at the time.

The company said its 5G product development in Oulu, the location of its main factory, and elsewhere in the country, would not be included in the planned 180 job cuts for 2020. The company employs 6,000 people in Finland.

However, the company stated redundancies would apply to all Nokia locations in Finland, with the biggest impact expected at the company's headquarters in Espoo.

In its third-quarter statement, Nokia said that it was lowering its cost savings target to €500 million ($557 million) by the end of 2020.

Nokia hired around 370 employees in Finland last year.

Shares in the company were down 0.35 per cent around midday GMT.

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