Nokia is preparing to cut thousands more jobs in 2026, as the global slowdown in 5G spending continues to impact the telecom industry.
The company still has around 4,000 roles left to eliminate under its ongoing cost-cutting plan, which aims to reduce expenses and improve profitability in a challenging market.
Reasons for Nokia’s Job Reductions
The biggest reason behind these layoffs is simple: telecom companies are spending less on 5G networks.
In recent years,
- global 5G spending has declined significantly,
- demand for network equipment has slowed,
- and sector growth has remained flat.
This has directly affected companies like Nokia and its rival Ericsson, both of which depend heavily on telecom operators for business.
Nokia has already reduced a large number of jobs over the years:
- Nokia employed approximately 103,000 people in 2018,
- which decreased to about 75,600 by 2024,
- and is expected to fall closer to 70,000 following current reductions.
The company’s goal is to save nearly €1.2 billion in costs, mainly by reducing workforce expenses.
Under CEO Justin Hotard, the focus is now on making Nokia more efficient while staying competitive.
A major concern is Nokia’s mobile networks division, which has experienced a sharp profit decline. This division is central to the company’s future but faces challenges including:
- Loss of key clients like Verizon and AT&T
- Strong competition from companies like Samsung and Ericsson
- Limited growth in the overall 5G market
Company Restructuring
To better manage costs, Nokia is restructuring its operations by:
- Merging multiple divisions into one unit
- Combining departments like HR, marketing, and finance
- Removing overlapping roles
These changes aim to improve efficiency but will also result in additional job cuts.
Industry Challenges
Nokia’s situation reflects a wider issue in the telecom world.
Although mobile data usage is increasing, infrastructure spending is not keeping pace. This creates a challenging environment in which:
- Revenue growth is limited.
- Competition is intense
- and companies must achieve more with fewer resources.
