Nokia, the telecommunications equipment manufacturer, announced on Wednesday that it will begin change negotiations with employees regarding potential job cuts. Reports indicate that the company may reduce up to 156 positions in Finland, specifically within its mobile network business. These negotiations are scheduled to commence on March 2nd. The announcement raises concerns about the future of jobs at the Finnish site as Nokia aims to adapt to the evolving telecommunications landscape.

In communication to employees, Mikko Hautala, who oversees geopolitics and community relations, explained that the job reductions are part of an effort to simplify Nokia's operational model in light of the transformative impact AI is having on the industry. The company’s strategy aims to reduce fragmentation at the team level and align its operations more closely with market demands. Hautala emphasized the importance of leveraging digitalization and AI to enhance efficiency and effectiveness within the company.

Additionally, Häutala mentioned that, aside from focusing on AI and data centers, Nokia will also make investments in sectors such as defense. This points to a strategic pivot for the company as it seeks to navigate current technological shifts and economic pressures, potentially reshaping its workforce and operational approach for future success in an increasingly competitive environment.