Nokia announced today that it is beginning actions to reduce
company personnel globally as part of its synergy and
transformation program. As previously announced, Nokia is targeting
EUR 900 million of operating cost synergies to be achieved in full
year 2018 related to the acquisition of Alcatel-Lucent. At the same
time, Nokia is taking steps to adapt to challenging market
conditions and to shift resources to future-oriented technologies
such as 5G, the Cloud and the Internet of Things. As part of the
program, the company also continues to target worldwide savings in
real estate, services, procurement, supply chain and manufacturing.
The headcount reductions are expected to take place between now
and the end of 2018, consistent with the company's synergy target
timeline. Reductions will come largely in areas where there
are overlaps, such as research and development, regional and sales
organizations as well as corporate functions. Nokia outlined these
areas on October 29, 2015, when updating its synergy target.
To start the process, Nokia representatives are meeting today
with the company's two European Works Councils. Similar meetings
and consultations with employee representatives are taking place in
almost 30 countries in the coming weeks. Processes and timelines
will vary from one country to another.
"These actions are designed to ensure that Nokia remains a
strong industry leader," said Nokia President and CEO Rajeev
Suri. "When we announced the acquisition of Alcatel-Lucent we
made a commitment to deliver EUR 900 million in synergies - and
that commitment has not changed. We also know that our actions will
have real human consequences and, given this, we will proceed in a
way that that is consistent with our company values and provide
transition and other support to the impacted employees."
Nokia plans to report on the implementation of the synergy and
transformation program in connection with its quarterly earnings
releases.
About Nokia
Nokia is a global leader in the technologies
that connect people and things. Powered by the innovation of Bell
Labs and Nokia Technologies, the company is at the forefront of
creating and licensing the technologies that are increasingly at
the heart of our connected lives.
With state-of-the-art software, hardware and
services for any type of network, Nokia is uniquely positioned to
help communication service providers, governments, and large
enterprises deliver on the promise of 5G, the Cloud and the
Internet of Things. www.nokia.com Media Enquiries: Nokia
Communications Tel. +358 (0) 10 448 4900 Email:
press.services@nokia.com
RISKS AND FORWARD-LOOKING STATEMENTS
It should be noted that Nokia and its businesses are exposed to
various risks and uncertainties, and certain statements herein that
are not historical facts are forward-looking statements, including,
without limitation, those regarding: A) our ability to integrate
Alcatel Lucent into our operations and achieve the targeted
business plans and benefits, including targeted synergies in
relation to the acquisition of Alcatel Lucent announced on April
15, 2015 and closed in early 2016; B) expectations, plans or
benefits related to our strategies, headcount reductions and growth
management; C) expectations, plans or benefits related to future
performance of our businesses; D) expectations, plans or benefits
related to changes in our management and other leadership,
operational structure and operating model, including the expected
characteristics, business, organizational structure, management and
operations following the acquisition of Alcatel Lucent; E)
expectations regarding market developments, general economic
conditions and structural changes; F) expectations and targets
regarding financial performance, results, operating expenses,
taxes, cost savings and competitiveness, as well as results of
operations including targeted synergies and those related to market
share, prices, net sales, income and margins; G) outcome of pending
and threatened litigation, arbitration, disputes, regulatory
proceedings or investigations by authorities; H) expectations
regarding restructurings, investments, uses of proceeds from
transactions, acquisitions and divestments and our ability to
achieve the financial and operational targets set in
connection with any such restructurings, investments, divestments
and acquisitions; and I) statements preceded by or including
"believe," "expect," "anticipate," "foresee," "sees," "target,"
"estimate," "designed," "aim," "plans," "intends," "focus,"
"continue," "project," "should, " "will" or similar expressions.
These statements are based on our management's best assumptions and
beliefs in light of the information currently available to it.
Because they involve risks and uncertainties, actual results may
differ materially from the results that we currently expect.
Factors, including risks and uncertainties, that could cause such
differences include, but are not limited to: 1) our ability to
execute our strategy, sustain or improve the operational and
financial performance of our business or correctly identify or
successfully pursue business opportunities or growth; 2) our
ability to achieve the anticipated business and operational
benefits and synergies from the Alcatel Lucent transaction,
including our ability to integrate Alcatel Lucent into our
operations and within the timeframe targeted, and our ability to
implement our organizational and operational structure efficiently;
3) our dependence on general economic and market conditions and
other developments in the economies where we operate; 4) our
ability to effectively and profitably compete and invest in new
competitive high-quality products, services, upgrades and
technologies and bring them to market in a timely manner; 5) our
ability to retain, motivate, develop and recruit appropriately
skilled employees while reducing our headcount; 6) our ability to
manage our manufacturing, service creation, delivery, logistics and
supply chain processes, and the risk related to our geographically
concentrated production sites; 7) the impact of an unfavorable
outcome of litigation, arbitration, agreement-related disputes or
allegations of product liability associated with our businesses; 8)
our ability to optimize our capital structure as planned and
re-establish our investment grade credit rating or otherwise
improve our credit ratings; 9) our ability to achieve targeted
benefits from or successfully implement planned transactions, as
well as the liabilities related thereto; 10) our ability to manage
and improve our financial and operating performance, cost savings,
competitiveness and synergy benefits after the acquisition of
Alcatel Lucent; 11) unexpected liabilities with respect to pension
plans, insurance matters and employees; and 12) unexpected
liabilities or issues with respect to the acquisition of Alcatel
Lucent, including pension, postretirement, health and life
insurance and other employee liabilities or higher than expected
transaction costs, as well as the risk factors specified on pages
69 to 87 of our annual report on Form 20-F filed on April 1, 2016
under "Operating and financial review and prospects-Risk factors",
as well as in Nokia's other filings with the U.S. Securities and
Exchange Commission. Other unknown or unpredictable factors or
underlying assumptions subsequently proven to be incorrect could
cause actual results to differ materially from those in the
forward-looking statements. We do not undertake any obligation to
publicly update or revise forward-looking statements, whether as a
result of new information, future events or otherwise, except to
the extent legally required.
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