Nokia to cut 1,233 jobs at French subsidiary Alcatel-Lucent International

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This is equivalent to a third of the unit’s workforce with the cuts confirmed as the pledge to the French government ends that secured jobs.

Nokia said the move was in response to “significant cost pressures”.

In April Nokia said it would reduce costs by €500 million by the end of 2020, compared with its costs in 2018, with €350 million coming from lower operating expenses and €150 million from lower cost of sales.

When Nokia bought Alcatel-Lucent International in 2015 for €15.6 billion, it pledged to keep jobs in France for two years and expand R&D teams to make the workforce a group resource for 5G.

Those pledges expire this month, and R&D will bear the brunt of the job losses. Nokia said it had wanted to cut jobs in 2019, but had faced a backlash from the government.

The decision appears to have come as a shock to the workforce.

Of the 5,138 people who work for Nokia in France, 3,640 work for Alcatel-Lucent International.

Thierry Boisnon, President, Nokia France, posted a statement:“Nokia will continue to be a major employer in France with a strong foothold in R&D, sales and services, which will enable us to develop and execute our customers’ projects efficiently.”