Nokia competes with both Ericsson and Huawei in the French market, especially for the development of the 5G network
By purchasing the local Alcatel-Luncent unit, the telecom company promised not to lay off future employees
However, this contract with the French government only expired last month, which also explains these cuts
From the beginning, the objective of the economic reopening after the quarantine was to allow brands and individuals to recover as soon as possible from the blow that was the stoppage of activities. But the solution has proven difficult to implement, as neither demand nor supply recovered as quickly as the official authorities would have liked. That’s not counting, of course, the fact that the pandemic is still ongoing. So companies like Nokia still suffer.
The case of this Finnish telecom is specifically mentioned by the news reported by .. Nokia revealed a few hours ago that it has plans to cut a third of its workforce at the French subsidiary Alcatel-Luncent. The above would represent the dismissal of some 1,233 people throughout its entire local operation. According to the company, the decision comes from « significant pressure to cut costs. » No further explanation was given.
The idea is that the new measure will be crucial in its goal to cut Nokia’s regular expenses by $ 560 million. It should be noted that the news was not first released by the telecom brand. In fact, . previously reported the information following statements by the French Finance Ministry. At the time it was also confirmed that cutting a third of its staff at Alcatel-Luncent would be part of a plan to cut costs.
The challenge of recovery for Nokia and the rest of the industry
Along with Finnish telecom, several companies have announced layoffs and closings of several branches even though they should have already returned to the new normal. For example, about three weeks ago Renault announced that it would cut 15,000 employees worldwide. In a similar move to Nokia, HSBC also brought back 35 thousand cuts that it raised at the beginning of the year. AT&T is also betting on the total restructuring of the business.
Unfortunately for the industry, and as Nokia and the rest can corroborate, the reopening of the economy has not been the magic remedy that everyone expected. The truth is that there are still endless barriers for consumption and the level of sales to recover to a level similar to that of a few months ago. Among them, the fact that the pandemic is not over, that people fear a major economic downturn and that consumption habits are different.
What can companies do to avoid more layoffs and restructuring? There really isn’t much they can do. If a company is not in the select group of companies that benefited from the pandemic, such as Nokia, the road to recovery will be long and winding. Along the way, we will have to continue taking radical measures of survival like those that have been taken these days. And try to regain the trust of the audience.
Solutions to a quick return to normality
Depending on the industry, the tips to avoid a destination like Nokia will be very different. For example, in tourism the spaces and the way in which customer service will operate are being completely renovated. Within the restaurant and cafe sector, sites like Starbucks are simply adding sanitation measures and protocols. In other sectors, such as sports, the strategy will be almost the same, but without letting the masses in.
While it is true that each industry has specific solutions, there are some points that would be useful for any brand to recover before the pandemic. In Dexcomm data, it is important to consider new revenue streams, not just cutting expenses like Nokia did. Deloitte believes that various approaches to management and leadership must be changed. For his part, Gartner says that the long-term future should not be lost sight of.
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