Finland’s Nokia plans to cut 1,233 jobs at its French subsidiary Alcatel-Lucent International, equivalent to a third of the unit’s workforce, the group said on Monday, confirming an earlier Reuters report .
The announcement has political resonance in France as Nokia bought the unit five years ago on the condition that it would keep the job.
Nokia, which competes with Ericsson and Huawei on lucrative 5G networks, said in a statement that the staff reduction was necessitated due to significant cost pressures.
Nokia said in April that it targeted to cut costs by 500 million euros (about Rs 4,260 crore) by the end of this year compared to the full year 2018, including 350 million euros (about Rs 2,981 crore) in operating expenses. Aim to come from. EUR 150 million (approximately Rs 1,277 crore) from the sale cost.
When Nokia bought Alcatel-Lucent International, it sold it within the group for next-generation mobile Internet technology, or 5G, in order to preserve jobs for two years in France and expand research and development teams in the country. Committed to creating a resource.
French research and development teams are particularly affected by the job cuts.
A spokesperson said that Nokia this month abdicated from such commitments.
Contacted by Reuters, the French government had no immediate comment.
“With a strong foothold in R&D, sales and services, Nokia will continue to be a major employer in France, which will enable us to efficiently develop and execute our customers’ projects,” said Thierry Boisson, President of Nokia in France.
Nokia employs 5,138 people in France, of whom 3,640 work for Alcatel-Lucent International.
The entity was part of the Alcatel-Lucent group before Nokia bought it in an all-share deal in 2015, valued at 15.6 billion euros (about Rs 1.32 lakh crore).
The merger was investigated by the French government and its then-economy minister, Emmanuel Macron, who is now president.
The CFE-CGC union at Nokia said on its website, “This is just a low-cost strategy that is being implemented, contrary to all the commitments made by Nokia in France. Nokia is first and foremost laughing at the French government.” Is.”
© Thomson Reuters 2020
Is Mi Notebook 14 series the most affordable laptop range for India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts either RSSDownload the episode, or just hit the play button below.