Nokia will slit the sizes of its workforce over the next two years to free up money to invest in its 5G networks business.
On Tuesday the Finnish telecommunications group said that they will cut between 5,000 and 10,000 jobs or 11% of its workforce, over the next 18 to 24 months.
“This is expected to lower the company’s cost base by approximately €600 million [$715.7 million] by the end of 2023. These savings will offset inflated investments in [research and development], future capabilities, and cost related to salary inflation.”
The reconstructing will cost over €600 million [715.7 million], with half of that expected this year.
Nokia’s spokesperson said; It plans to continue recruiting in 5G, with a particular focus on its domestic market.
Nokia is heaving up investments into 5G networks after falling behind nemesis Huawei and Ericsson [ERIC].
On Monday, it was announced that the company partner shipped with Amazon [AMZN] web services and Google [GOOG] Cloud to develop new applications for the technology.
It’s also teaming up with Microsoft [MSFT] to build cloud solutions for businesses and announced a partnership with NASA in October that it seeks to put a4G network on the moon.