Nokia has pushed back against criticism of its European job cuts and US investment drive, insisting reductions in France and Germany are part of a long-planned cost-savings programme and do not undermine its standards work or regional commitment.
In sum – what to know:
Part of 2023 plan – Nokia says the loss of around 1,000 roles in France and Germany stems from its previously announced cost-savings programme, not a shift away from Europe; consultations with unions and works councils are ongoing.
IPR and standards – the firm disputes suggestions that Munich holds the majority of its patents or that closures will gut its 3GPP standards work, stating it remains strongly positioned for “AI-native 6G”.
US complements EU – its $4bn US investment and its Infinera acquisition align with its growth strategy; Nokia says new R&D facilities in Oulu and a broad EU footprint show its continued commitment to the region.
Nokia has responded to RCR Wireless to clarify its two-way strategy around European reductions and American investments, discussed as badly timed, and also badly handled, in an opinion piece last week. But the Finnish firm has said the staff cull in France and Germany (November 14), which will see around 700 roles go before the end of 2026, and more than 1,000 by 2030, is part of a well-telegraphed “cost savings programme”, announced in 2023. It has also rejected the suggestion, put to it separately, that its Munich office, close to the EU patents office, where the job losses will be mostly keenly felt, accounts for the lion’s share of its intellectual property rights (IPR) patents.
The Munich IPR total is “substantially lower than 60 percent”, it said – in response to claims that its Munich and Paris offices contribute at least that much. It rejected that its Munich closure, plus its French cut-backs (in Paris and Lannion, Brittany), will gut its traditional 3GPP standards operation. It said: “We have played a leading role in the development of every generation of cellular standards and are strongly positioned to do so again with AI-native 6G. This remains a key strategic priority.” It said it is in proper discussion with unions and works councils, as previously.
Moreover, Nokia maintains its parallel investment in the US, to the tune of $4 billion (November 21), tallies with its growth strategy, driven in large part by its $2.3 billion acquisition of US-based Infinera in June last year. Its new R&D campus and factory in Oulu, in Finland, demonstrates its total commitment to Europe – as part of a rounded global footprint, it argued. Its full statement is included below. It did not respond to questions about whether its office in Seoul, in South Korea, has also been impacted by job cuts.
Here is Nokia’s statement in full.
On headcount:
“We announced our strategy at Capital Markets Day focusing on the areas where the company can lead, simplify our operations, innovate faster, and serve our customers best. To address market conditions and position Nokia for long-term growth, we will continue the global cost-saving programme announced in 2023. The recently announced adjustments in France and Germany are part of this programme.
“We always follow all legal requirements in line with local labour laws and conduct consultations with local unions and works councils when required. We are also providing support to all affected employees through this transition.”
On Europe:
“Nokia aims to focus investment on key hubs around the world to strengthen our capacity for long-term growth and customer engagement while ensuring our teams have the environments they need to succeed. Germany remains an important hub for our business with offices in Nuremberg, Ulm, Stuttgart, Bonn, and Düsseldorf, including R&D capabilities and serving as important customer-facing sites.
“We are also planning a gradual closure of the Munich office by the end of 2030. In addition, as a part of our global cost-saving programme, announced in 2023, we are planning to potentially reduce approximately 300 positions in Germany by the end of 2026. The planned employee reduction concerning France is expected to be completed during 2026 and will be based on voluntary departures (Collective Conventional Break; CCB).”
On global R&D:
“Both the US and Europe are critical markets for our business and a strategic base for R&D and manufacturing.
“We are a major innovator and invested over €4.5 billion in R&D last year alone, and our R&D footprint is truly global. We have played a leading role in the development of every generation of cellular standards and are strongly positioned to do so again with AI-native 6G. This remains a key strategic priority.
“New investments in the US complement our wider R&D network, including major technology centres in Europe, such as our new R&D campus and factory in Oulu, Finland. The announced investment, in collaboration with the US Administration and its CHIPS Act, plans to expand our R&D and manufacturing capabilities in the country and builds on our acquisition of Infinera. The multi-year investment enhances our ability to better serve US customers.”
