War in Ukraine: Nokia suspends operations in Russia and lays off 2,000 employees

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The decision to suspend its activities in Russia and the dismissal of 2,000 employees working in Putin’s country Nokia showing her opposition to war which continues in Ukraine.

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The announcement by the Finnish telecommunications equipment company, which employs a total of 90,000 people, comes the day after the decision of the Swedish competitor Ericsson to suspend its operations indefinitely in Russia.

Nokia, which had already stopped deliveries to the country in early Marchin order to comply with the sanctions imposed on the country after the invasion of Ukraine, “announces that it will leave the Russian market,” the company said in a statement.

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“It was clear to Nokia from the first days of the invasion of Ukraine that it was impossible for us to continue our presence in Russia,” Nokia CEO Peka Ludmark said in a Twitter post.

Nokia has 2,000 employees in Russia, including about 200 in research and development, said a spokeswoman for AFP.

“Job cuts are inevitable”

“Unfortunately, under these circumstances, job cuts are inevitable. “However, for some positions outside Russia, we will offer transfers,” the company said in an email.

“The safety and well-being of our employees is our priority and we want to make these changes in an orderly manner,” said Maria Vaisma, the group’s public relations manager.

Russia accounted for “less than 2%” of Nokia’s turnover in 2021 and the group emphasizes that it maintains its financial forecasts for 2022 “due to strong demand in other regions”.

At noon, the group’s share lost 1%, with the share price at 4.88 euros on the Helsinki Stock Exchange in a small stock market decline (-0.1%).

On Monday, Nokia’s Swedish competitor Ericsson announced that it would suspend operations in Russia indefinitely and put its 600 employees on paid leave.

The withdrawal and freezing of economic activities of the two western giants of the industry in Russia leaves the way open to their main competitor, the Chinese Huawei. The three groups share the largest market share for the installation of 4G and 5G networks worldwide.

The world number one in the industry until last year, the Chinese giant saw its share fall under the influence of a boycott movement in many Western countries led by the US.

Hundreds of mainly Western companies have announced the suspension of their activities or the withdrawal from Russia after the invasion of Ukraine on February 24 and the significant sanctions that hit Moscow.

Source: News Beast

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