Nokia is cutting up to 14,000 jobs, roughly 20% of its 74,100-person workforce. The Finnish telecom giant is facing declining sales as wireless operators pull back on 5G infrastructure spending after the initial buildout wave. Capital expenditure budgets at major carriers have contracted, and Nokia's network equipment business is absorbing the impact directly.
This is one of the largest single layoffs in European tech in 2026. Nokia is attempting to pivot toward AI-driven network optimization and next-generation wireless technologies, but the immediate reality is a company that expanded to serve 5G demand that plateaued sooner than expected. The restructuring is not a one-time event but part of an ongoing streamlining effort that has already reduced headcount over the past two years.
The telecom equipment sector is consolidating globally. Ericsson cut 1,600 jobs in Sweden in January 2026, and Telefonica is eliminating 6,000 roles across its operations. The infrastructure buildout that defined the early 2020s has transitioned to a maintenance phase, and the companies that built for growth are now sizing for steady state.