Nokia is set to cut more than 14,000 jobs globally, representing around 20% of its workforce.
The move forms part of a multi-year restructuring plan aimed at improving efficiency and aligning operations with long-term strategic priorities.
India Operations to See Leadership Changes
As part of its restructuring efforts, Nokia has announced key leadership appointments in India.
Specifically, Samar Mittal will take on the role of India Country Business Leader, while Vibha Mehra will become India Country Manager starting April 1, 2026.
Together, these changes signal a renewed focus on strengthening the company’s position in one of its key growth markets.
Simplifying Business Structure
At the same time, Nokia is restructuring its operations into two core segments: Network Infrastructure and Mobile Infrastructure.
Through this move, the company aims to reduce internal complexity and streamline decision-making.
In particular, it is addressing challenges that emerged from earlier integrations, which created overlapping roles across business units.
Cost-Cutting Plan and Operational Reset
Meanwhile, the planned job cuts align with a broader cost-saving program announced in 2023.
Under this plan, Nokia aims to reduce between 9,000 and 14,000 roles by the end of 2026.
Additionally, the company is working to eliminate operational inefficiencies and reset its cost structure to improve long-term performance.
Mixed Performance in India
In recent periods, Nokia has experienced volatility in its India performance.
For instance, network sales grew 75% year-on-year in the first quarter of 2025.
However, net sales declined 15% in the fourth quarter of the same year, reflecting shifting market dynamics.
Competitive Pressure and Contract Losses
At the same time, the company has come under additional pressure after losing a key 5G contract with AT&T.
Notably, this contract accounted for an estimated 5% to 8% of its mobile network sales.
As a result, the loss has increased the urgency behind Nokia’s restructuring and cost optimization efforts.
Betting on AI and Optical Networks
Meanwhile, Nokia is actively increasing its focus on AI-driven infrastructure and high-speed connectivity.
In line with this strategy, its $2.3 billion acquisition of Infinera strengthens its position in optical networking, particularly for AI data centers.
The deal enhances Nokia’s ability to compete with major players such as Ciena and Huawei.
A Strategic Reset for the Future
The restructuring reflects a broader shift in Nokia’s strategy.
By reducing costs, simplifying operations, and investing in AI and next-generation networks, the company is repositioning itself for a more competitive and technology-driven future.
🔗 Source: The Economic Times
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