Telecoms group Nokia said on Tuesday it plans to cut up to 10,000 jobs within the next two years to trim costs and boost investment in research capabilities.
The company said in a statement it expects around €600m to €700m of restructuring and associated charges by 2023.
Nokia predicts the restructuring will lower its cost base by about €600m by the end of 2023, with half of those savings expected to be reached this year.
These savings will offset increased investments in research and development of future capabilities and costs related to salary inflation, the company said.
Pekka Lundmark, president and CEO of Nokia, said that decisions to cut employees “are never taken lightly”.
“Ensuring we have the right setup and capabilities is a necessary step to deliver sustainable long-term performance,” he said.
“My priority is to ensure that everyone impacted is supported through this process.”
After taking over the job last year, Lundmark has been transforming the company to better compete with Nordic rival Ericsson.
He announced a new strategy last October which stated the company would do “whatever it takes” to take the lead in 5G.
Lundmark is expected to present his long-term plans and set financial targets during the firm’s capital markets day on Thursday.