Nokia says it expects to publish a revised, more optimistic forecast for 2021 that will change the outcome under new CEO Pika Landmark.
Finland’s networking giant has warned investors that it will expect a “transitional” year because it took “whatever it takes” to win the 5G radio market.
The warning came despite being stronger than expected in the last quarter of 2020.
Nokia jobs cut
The company competed fiercely with other network device providers (NEPs) such as Ericsson and Huawei. However, the company was surprised by the already expected shift in 5G and struggled with the high cost of developing 5G technologies.
To address the situation, Landmark was appointed CEO last summer and launched a major internal restructuring that gave the company four key business segments: mobile networks, IP and fixed networks. Seen in cloud and network services, and Nokia Technologies.
More than 10,000, 10,000 jobs were considered a threat to stay competitive as Nokia redefined its cost base to redirect funds to R&D, future capabilities and salary inflation-related expenses. Configures
“We are progressing well with a three-pronged plan to achieve sustainable, profitable growth and technological leadership,” Lundmark announced. “Our first half performance has shown good cost control and has also benefited from strength in our closing markets. We expect some headlines in the second half as we have highlighted before. But our performance in the first half provides a good foundation for the whole year.
6. The previous revenue outlook between .6 20.6 billion and 21 21.8 billion will be revised on July 29.