& cplSiteName &

Nokia Job Cuts in France on Hold – Report

Iain Morris

Nokia's plans to cut about 600 jobs in France are on hold after French government officials requested a meeting with the Finnish vendor on October 2, according to a story from Reuters.

Benjamin Griveaux, the French junior economy minister, told reporters that he would meet with unions and senior executives representing Nokia Corp. (NYSE: NOK) on October 2 to make sure the company was fulfilling earlier promises to boost research and development jobs in France.

The news comes after Nokia was reported earlier this month to have said it would cut about 600 jobs in France as part of a drive to save around €1.2 billion ($1.4 billion) by the end of 2018. (See Eurobites: ADVA Lands South African Fiber Rollout Deal.)

The cuts represent about 0.6% of Nokia's global workforce and will affect employees at either Nokia Solutions Networks France or what used to be Alcatel-Lucent, the Paris-headquartered vendor it acquired in a €15.6 billion ($18.7 billion, at today's exchange rate) deal last year.

As Reuters reports, during his tenure as economy minister, French President Emmanuel Macron extracted a promise from Nokia that it would hire another 500 R&D professionals in France if it was allowed to buy Alcatel-Lucent.

For all the latest news from the wireless networking and services sector, check out our dedicated Mobile content channel here on Light Reading.

Like Swedish rival Ericsson AB (Nasdaq: ERIC), Nokia has recently suffered dwindling sales amid a downturn in the market for network equipment. (See Nokia Shames Ericsson on Profits but Sees Trouble Ahead.)

Revenues at its networks business, which accounts for 88% of the total, shrank 5% in the recent April-to-June quarter, to about €4.97 billion ($5.95 billion), compared with the year-earlier period.

The company appears to have fared better than Ericsson, however, and is currently eyeing an expansion into enterprise markets where it believes the growth prospects are much better than in its mainstream telco business.

Both companies have faced tough competition from Chinese equipment giant Huawei Technologies Co. Ltd. , although even that company has recently complained about worsening conditions in the service provider market. (See Huawei Slowdown Casts Pall Over Network Sector.)

Nokia's share price closed down 0.48% in Helsinki today.

— Iain Morris, News Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Sabre
9/19/2017 | 3:37:36 PM
Seems as though the global networking market has slowed down. Things might pick up in the future as there are infra upgrades, but maybe Nokia is too big right now? Hard to say with these global swings. 
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue – London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Is US Lurching Back to Monopoly Status?
Carol Wilson, Editor-at-large, 10/16/2017
'Brutal' Automation & the Looming Workforce Cull
Iain Morris, News Editor, 10/18/2017
Muni Policies Stymie Edge Computing
Carol Wilson, Editor-at-large, 10/17/2017
Pai's FCC Raises Alarms at Competitive Carriers
Carol Wilson, Editor-at-large, 10/16/2017
Worried About Bandwidth for 4K? Here Comes 8K!
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 10/17/2017
Animals with Phones
Selfie Game Strong Click Here
Latest Comment
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives