Nokia has announced plans to cut its workforce by up to 14,000 people following a 15 per cent sales decline in the third quarter.

The number of people working for the company is set to drop from the current 86,000 to between 72,000 and 77,000.

The move forms part of a new programme announced by the telecoms provider which aims to lower its cost base by between €800 million and €1.2 billion over a three-year period, representing an overall 10 to 15 per cent reduction in personnel expenses.

The company blamed poor sales figures on macroeconomic challenges, which it said had pressurised operator spending. It added that network infrastructure sales were down by 14 per cent because of weaker spending which impacted IP networks.

Mobile network net sales were also down 19 per cent, which Nokia said was due to moderation in the pace of 5G deployment in India. The electronics giant explained that this meant the growth in the country was no longer enough to offset a slowdown in North America.

“The most difficult business decisions to make are the ones that impact our people,” said Nokia president and chief executive Pekka Lundmark.

The chief executive added that resetting its cost-base is a “necessary step” to tackle market uncertainty and secure its long-term profitability.

Nokia said that it expects to "act quickly" on the programme, with at least €400 million in-year savings in 2024 and a further €300 million the following year.

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