Nokia is doing major workforce changes aimed to boost operational efficiency including job cuts and role switches. Around $13 billion are expected to be saved by 2026.
Nokia has appointed Tarun Chhabra as the new head of Nokia India. This leadership change occurs as the company faces difficult market conditions and has plans to cut its global workforce by 11,000 to 14,000 jobs. The company aims to improve operational efficiency and adjust to changing market dynamics with this strategic decision.
Tarun Chhabra was previously in charge of mobile networks and a senior vice president at Nokia. He will start his new position in April 2024. He is taking over from Sanjay Malik, who has been handling Nokia’s operations in India for nearly eight years. Chhabra will be responsible for the Indian market and managing the mobile networks group’s business in India, under the supervision of Tommi Uitto, the president of Mobile Networks at Nokia.
Despite Nokia’s strong financial performance in the Indian market last year, which was boosted by significant 5G contracts with leading telecom operators, the company has seen a slowdown in 5G rollouts by Indian telecom companies. This resulted in a 33% decrease in net sales in the Indian region for the October-December 2023 period.
Following the global announcement in October, the restructuring process in India began and lasted until the end of December. Some employees were asked to resign and others took voluntary exits due to role changes. Severance packages were provided to those affected to aid their transition from the company.
The global reductions are expected to lower Nokia’s expenses by up to $1.3 billion (€1.2 billion) by the end of 2026. In 2022, Nokia employed 86,900 people across about 130 locations globally, with around 38,000 in Europe. The cost-saving measures come in response to a 20% year-on-year drop in net sales to 4.98 billion euros and a 69% fall in profit to 133 million euros in the third quarter.
As it undergoes these changes, Nokia is concentrating on long-term growth, sustainability, operational excellence, and customer satisfaction. The appointment of Tarun Chhabra as the head of Nokia India is central to this broader strategy, demonstrating the company’s dedication to maintaining a significant presence in one of its vital markets while striving for cost efficiency and organisational flexibility.