Nokia has pushed again in opposition to criticism of its European job cuts and US funding drive, insisting reductions in France and Germany are a part of a long-planned cost-savings programme and don’t undermine its requirements work or regional dedication.
In sum – what to know:
A part of 2023 plan – Nokia says the lack of round 1,000 roles in France and Germany stems from its beforehand introduced cost-savings programme, not a shift away from Europe; consultations with unions and works councils are ongoing.
IPR and requirements – the agency disputes ideas that Munich holds the vast majority of its patents or that closures will intestine its 3GPP requirements work, stating it stays strongly positioned for “AI-native 6G”.
US enhances EU – its $4bn US funding and its Infinera acquisition align with its development technique; Nokia says new R&D services in Oulu and a broad EU footprint present its continued dedication to the area.
Nokia has responded to RCR Wi-fi to make clear its two-way technique round European reductions and American investments, mentioned as badly timed, and likewise badly dealt with, in an opinion piece final week. However the Finnish agency has stated the workers cull in France and Germany (November 14), which is able to see round 700 roles go earlier than the tip of 2026, and greater than 1,000 by 2030, is a part of a well-telegraphed “value financial savings programme”, introduced in 2023. It has additionally rejected the suggestion, put to it individually, that its Munich workplace, near the EU patents workplace, the place the job losses shall be principally keenly felt, accounts for the lion’s share of its mental property rights (IPR) patents.
The Munich IPR complete is “considerably decrease than 60 %”, it stated – in response to claims that its Munich and Paris places of work contribute not less than that a lot. It rejected that its Munich closure, plus its French cut-backs (in Paris and Lannion, Brittany), will intestine its conventional 3GPP requirements operation. It stated: “We’ve performed a number one function within the growth of each era of mobile requirements and are strongly positioned to take action once more with AI-native 6G. This stays a key strategic precedence.” It stated it’s in correct dialogue with unions and works councils, as beforehand.
Furthermore, Nokia maintains its parallel funding within the US, to the tune of $4 billion (November 21), tallies with its development technique, pushed largely by its $2.3 billion acquisition of US-based Infinera in June final 12 months. Its new R&D campus and manufacturing facility in Oulu, in Finland, demonstrates its complete dedication to Europe – as a part of a rounded international footprint, it argued. Its full assertion is included beneath. It didn’t reply to questions on whether or not its workplace in Seoul, in South Korea, has additionally been impacted by job cuts.
Right here is Nokia’s assertion in full.
On headcount:
“We introduced our technique at Capital Markets Day specializing in the areas the place the corporate can lead, simplify our operations, innovate quicker, and serve our prospects greatest. To deal with market circumstances and place Nokia for long-term development, we are going to proceed the worldwide cost-saving programme introduced in 2023. The lately introduced changes in France and Germany are a part of this programme.
“We at all times observe all authorized necessities in step with native labour legal guidelines and conduct consultations with native unions and works councils when required. We’re additionally offering assist to all affected staff by this transition.”
On Europe:
“Nokia goals to focus funding on key hubs world wide to strengthen our capability for long-term development and buyer engagement whereas making certain our groups have the environments they should succeed. Germany stays an necessary hub for our enterprise with places of work in Nuremberg, Ulm, Stuttgart, Bonn, and Düsseldorf, together with R&D capabilities and serving as necessary customer-facing websites.
“We’re additionally planning a gradual closure of the Munich workplace by the tip of 2030. As well as, as part of our international cost-saving programme, introduced in 2023, we’re planning to probably cut back roughly 300 positions in Germany by the tip of 2026. The deliberate worker discount regarding France is predicted to be accomplished throughout 2026 and shall be based mostly on voluntary departures (Collective Standard Break; CCB).”
On international R&D:
“Each the US and Europe are important markets for our enterprise and a strategic base for R&D and manufacturing.
“We’re a significant innovator and invested over €4.5 billion in R&D final 12 months alone, and our R&D footprint is really international. We’ve performed a number one function within the growth of each era of mobile requirements and are strongly positioned to take action once more with AI-native 6G. This stays a key strategic precedence.
“New investments within the US complement our wider R&D community, together with main know-how centres in Europe, comparable to our new R&D campus and manufacturing facility in Oulu, Finland. The introduced funding, in collaboration with the US Administration and its CHIPS Act, plans to increase our R&D and manufacturing capabilities within the nation and builds on our acquisition of Infinera. The multi-year funding enhances our means to raised serve US prospects.”
