Nokia has recruited 350 staff in Finland this year, 240 in its mobile networks unit and many dedicated to developing SoC integrated circuits - a key element for its 5G equipment.
The move is a little odd because the outfit slashed its 2019 and 2020 profit outlook last week, saying profit would come under pressure as the company spends more to fend off rivals in the fast-growing 5G networks business. Nokia shares plunged 21 percent last Thursday after the company posted disappointing third-quarter results and slashed its outlook. Nokia shares are down 30 percent this year.
The head of Nokia’s networks unit Tommi Uitto said development personnel lately had been hired in Oulu but also in Tampere and Espoo.
Nokia’s key customers in its biggest 5G market - North America - have limited their spending due to proposed mergers. Last week, Nokia warned about losses from mergers such as T-Mobile US Inc’s proposed $26.5 billion tie-up with Sprint Corp, which in October won formal approval from the Federal Communications Commission.
Nokia is a key supplier to both telecoms companies, which have slowed spending as their potential merger faces court challenges.
Nokia’s performance is in sharp contrast with that of its Swedish rival Ericsson which last week beat quarterly earnings expectations and lifted its market forecast for this year and its sales target for 2020.