Nokia to cut as many as 14,000 jobs as profit drops by 69%
Nokia to cut as many as 14,000 jobs as profit drops by 69%
Nokia set plans to cut its workforce by up to 14,000 as it reported a steep drop in third-quarter profit. The telecom equipment maker said it’s looking to...
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That's a drop in profit, right? Not an actual loss
Yes, one quarter of decreased profits. Sales for the same quarter are only down 20%.
Another article says “The company still expects full-year net sales in a range between 23.2 billion euros and 24.6 billion euros, sticking to its forecast.”
I understand that it’s sometimes necessary for companies to trim the fat. But with annual net sales still on track and the company making healthy profits for many quarters running, it sure sucks for those 14,000 people that one bad quarter is being used as the reason that they’ll no longer be able to pay their bills.
https://www.cnbc.com/amp/2023/10/19/nokia-to-cut-up-to-14000-jobs-after-profit-plunges-.html
It’s what hedges and private equity investors want to see. Trimming the fat is easy financial engineering to make the books look better in the short term since they usually only stick around for 2 to 4 years before divesting.
Yep, and it results in lower employee morale, reduced efficiency, higher turnover, and long-term project abandonment. You can't trim the fat off a workhorse without slaughtering it.