Nokia, the Finnish electronics manufacturer, disclosed significant staff reductions during the third quarter of 2023 as its net profit declined sharply from the year before. The move comes amid a tougher quarterly performance and confirms ongoing cost-control measures across the organization.
For the July to September period, Nokia reported a net profit of 133 million euros, down from 428 million euros a year earlier. Revenue also declined, dropping 20 percent from 6.241 billion euros to 4.982 billion euros. Market expectations had anticipated a much stronger result, with consensus estimates for net profit near 395 million euros and revenue around 5.66 billion euros. These gaps highlight a material shortfall between the company’s actual performance and Wall Street expectations.
Across all divisions engaged in telecom equipment production, revenues eased and the operating margin narrowed by about 200 basis points. In response, Nokia reaffirmed its previously issued revenue guidance for 2023, signaling confidence in the company’s strategic plans despite near-term pressure. At the same time, the organization indicated that personnel reductions would be followed by growth in headcount through a targeted expansion plan, pushing the total workforce toward 14,000 under the ongoing cost-reduction program. As of the quarter, the firm employed roughly 86,000 people globally.
In the United States, late August data showed the largest wave of layoffs observed since 2020, underscoring a broader labor-market cooling in certain sectors.
Earlier this year, Astra, the American space company, announced widespread reductions as the quarter unfolded, with about a quarter of its staff redirected to other roles or departments due to tighter finances. Approximately 50 engineers and production personnel were affected by these internal moves, reflecting strategic realignments intended to preserve core capabilities while managing costs. According to subsequent statements, these adjustments were part of a broader effort to stabilize operations during a period of economic reassessment. [Citation: Nokia and Astra company disclosures]