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Finnish company, Nokia Oyj has reportedly announced that it plans to cut around 5000 to 10,000 jobs within a period of two years. The move will help the brand save money.

Nokia will be doing this to reduce the costs and in turn invest more in the brand's research capacity. The company expects to spend around 600 million euros to 700 million euros due to charges associated with the process by 2023.

The new announcement will lead to Nokia reducing its total workforce by 10%. The recent annual report of the company disappointed investors due to declining revenue.

In October last year the company announced a new operating model designed to better position the company for changing markets and align with customer needs. According to the company, the new model is optimized for better accountability and transparency, increased simplicity and improved cost-efficiency.

Chief Executive Officer Pekka Lundmark claimed that each of the company’s four business groups “has identified a clear path to sustainable, profitable growth and they are resetting their cost bases to invest in their future."

"Each business group will aim for technology leadership. In those areas where we choose to compete, we will play to win. We are therefore enhancing product quality and cost competitiveness, and investing in the right skills and capabilities," Lundmark continued.

According to Nokia, these plans are expected to result in an 80,000–85,000 employee organization over an 18–24-month period, instead of the approximately 90,000 employees that Nokia employs today. The company claims that the exact number will depend on market developments over the next two years.

“Decisions that may have a potential impact on our employees are never taken lightly. Ensuring we have the right setup and capabilities is a necessary step to deliver sustainable long-term performance. My priority is to ensure that everyone impacted is supported through this process," said Lundmark.

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