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🇫🇮 Finland /Economy & Trade

Nokia to Cut 1,600 Jobs in China as R&D Unit Closes

From Helsingin Sanomat · () Finnish

Translated from Finnish, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Nokia is closing its research and development unit in Hangzhou, China, which employs 1,600 people.
  • The unit specializes in developing radio technology.
  • The closure is part of Nokia's strategy to simplify operations and focus on fixed networks over mobile networks.

Nokia is set to close its research and development unit in Hangzhou, China, by the end of the year, according to sources familiar with the matter. The facility, which focuses on developing radio technology, employs 1,600 individuals.

The decision is part of Nokia's broader strategy to streamline its global operations. Earlier this year, the company reduced its business groups from four to two. Nokia is also implementing two separate cost-saving programs aimed at ensuring future profitability.

The telecommunications equipment manufacturer anticipates that its business growth will primarily come from fixed networks rather than mobile networks in the future. This strategic shift underscores a reevaluation of market priorities within the company.

Nokia has informed the employees at the Hangzhou unit about the impending closure. The company has not yet provided further details on the specific impact or transition plans for the affected staff.

DistantNews Editorial

Originally published by Helsingin Sanomat in Finnish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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