“This is expected to lower the company’s cost base by approximately €600 million ($715.7 million) by the end of 2023. These savings will offset increased investments in [research and development], future capabilities and costs related to salary inflation,” it added.
The restructuring will cost over €600 million ($715.7 million), with half of that expected this year.
A spokesperson for the company told CNN Business that it plans to continue recruiting in 5G, with a particular focus on its domestic market. “In Finland, we have hired more people than we have reduced during the past two years, and we expect the impact of these planned changes announced today to be net positive,” the spokesperson said.
“In those areas where we choose to compete, we will play to win,” CEO Pekka Lundmark said in the statement. “We are therefore enhancing product quality and cost competitiveness, and investing in the right skills and capabilities,” he added.