Finnish telecom firm Nokia saw a year-on-year 27 percent decline in operating profits in its third quarter. The company announced on Thursday it has initiated a savings programme.
Nokia's operating profit during July-September was 487 million euros, which is 27 percent less than the same period in 2017, when the mobile network equipment firm's profits reached 668 million euros.
The company's turnover this year, according to an announcement it made on Thursday, stood at about 5.5 billion euros.
Nokia has announced that it has started an expenditure savings programme which aims to save some 700 million euros within the next two years.
"Net reduction in employees globally"
The company said its savings plan will require a reduction in personnel, but did not specify how many of its workers could be affected. In a statement issued Thursday the firm said the changes would result in a "net reduction of employees globally."
The firm said it would initiate redundancy talks with staff once it clarifies details about its plans.
Nokia's CEO and president Rajeev Suri noted that the company is coming to the end of a previous 1.2 billion euro savings plan put into motion after it acquired French-US networks giant Alcatel-Lucent.
"Our industry is one where a constant focus on costs is essential," Suri said in a release issued Thursday.
"The plan we are announcing today is the logical step to take as the completion of our Alcatel-Lucent-related cost saving program draws near. Since the acquisition closed, we have been integrating and capturing synergies and now it is time to focus on optimizing and ensuring that we are lean in every part of our business."
"Even if these actions are right for our business, we do not take them lightly given the expected impact on our employees. We will strive to do right for those people affected by the planned changes, acting transparently and providing transition and support to those who need it," Suri said.