A MAJOR tech brand has announced plans to revamp its corporate structure, resulting in up to 14,000 job cuts in the next three years.
The Finnish tech giant Nokia scheduled an overhaul, slashing over 10% of its staff.
The company currently employs 86,000 staffers - plans would cut the employee footprint to between 72,000 and 76,000, according to The New York Times.
The company's CEO Pekka Lundmark said the decisions to cut staff are part of a three-pronged strategy to regain financial strength.
"...While the timing of the market recovery is uncertain, we are not standing still, but taking decisive action on three levels: strategic, operational and cost," Lundmark said.
"I believe these actions will make us stronger and deliver significant value for our shareholders."
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The cuts will reduce costs up to $1.3 billion, the CEO said.
The statement said the company's rate of job cuts will depend on the state of inflation.
"The most difficult business decisions to make are the ones that impact our people," Lundmark added.
"We have immensely talented employees at Nokia, and we will support everyone that is affected by this process."
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In a statement to The U.S. Sun, a Nokia spokesperson confirmed the job cuts, but didn't provide data on the number of US jobs that are in jeopardy.
"We are now beginning the process of consultation on initial reductions," the spokesperson said.
"The program to lower cost base is a three-year program, and the timing and detail of final reductions will be decided only after careful consideration and will depend on the evolution of end market demand."
COSTS COMPOUND
Nokia's job announcements come after the company saw dwindling sales figures and a subsequent drop in profits.
Sales declined in the third quarter by 20%, leading to a 69% dive in profits compared to the same quarter last year.
"In the face of a challenging market environment, we will reduce our cost base to protect our profitability," Lundmark said.
The tech company has quickly lost market share of physical phones to other tech giants like Apple.
Nokia sold its physical device businesses to Microsoft for $7.2 billion in 2013.
The company's focus remained on building wireless infrastructure in other countries - including modernizing nations like India.
Lundmark said in January that expansive growth in rapidly developing countries - particularly nations investing in 5G - was the company's main focus.
"We are taking market share now," he said, adding that India's growth was "the highlight of this [company's] story," according to Reuters.
JOBS LOST
Nokia joins several other major brands in cutting jobs.
CVS, CitiGroup, and Ford all announced plans to lay off employees.
All companies are going through massive changes in tech and consumer demand.
Job losses were expected throughout the American economy after the federal government continued to raise interest rates, cutting into corporate profits on borrowed money.
However, US employers added 336,000 jobs in September, according to the Labor Department.
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The U.S. Sun reports on other job cuts - hundreds of employees at this company were abruptly out of a job.
Also, here is how a local lawmaker is fighting against entry-level job cuts.
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