The company reported a 20 per cent drop in sales between July and September which might have something to do with it.

 The company blamed slowing demand for 5G equipment in markets like North America. It has 86,000 employees worldwide and has axed thousands of jobs since 2015. It said that Nokia wants to cut costs by between $845 million and $1.27 billion by 2026.

The former rubber boot maker said that its customers have been cutting spending amid high inflation and interest rates, it said.

Nokia admitted that the move to the cloud and AI should make the company stacks of cash as both require shedloads of network investments, which is Nokia’s thing.

However, chief executive Pekka Lundmark said a market recovery was uncertain, so it is better to take decisive action by cutting costs by $422 million in 2024, and $317 million in 2025.