Nokia, the Finnish telecommunications giant, has announced that it will cut up to 14,000 jobs by the end of 2026 as part of a cost reduction plan. The company said that it will lower its cost base by between 800 million euros and 1.2 billion euros to cope with the challenging market environment.

The job cuts will reduce the number of employees from 86,000 to between 72,000 and 77,000. The move comes after Nokia reported a 20% drop in net sales and a 69% fall in profit in the third quarter of this year.

Nokia, one of the world’s largest telecommunications equipment makers, has been facing challenges from a slowing global economy and from lower spending by mobile operators. Its mobile networks business, its biggest unit by revenue, saw a 24% decline in sales and a 64% drop in operating profit in the third quarter.

Nokia said that the sales decline was mainly driven by North America and India, where 5G deployments have slowed down. 5G is the next-generation mobile internet that promises faster speeds.

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