Nokia India plans to layoff 20% workforce as restructuring deepens
What's the story
Nokia is gearing up for another round of layoffs in its Indian operations as part of a global restructuring plan. The company, which has a workforce of 74,100 employees worldwide, could cut up to 20% of its staff over time. The India unit is likely to see similar reductions, according to Moneycontrol.
Strategic shift
Nokia's major structural overhaul
Nokia's CEO Justin Hotard announced a major structural overhaul in November 2025. The new strategy, effective from 2026, divides the company into two main segments: Network Infrastructure and Mobile Infrastructure. Non-core businesses have been grouped separately for possible divestment or review. This is part of Nokia's efforts to streamline operations and adapt to the growing demand for AI-driven solutions.
Leadership shifts
Changes in leadership as part of restructuring
The restructuring has already resulted in the promotion of Samar Mittal as India Country Business Leader and Vibha Mehra as India Country Manager. Tarun Chhabra, the former head of Nokia India, will be leaving his position. The changes come as part of a larger strategy to simplify operations and align with emerging AI-driven demand.
Past structure
Return to horizontal structure after failed vertical model experiment
Before 2023, Nokia had a horizontal structure where sales teams managed customer relationships end-to-end. This was changed to a vertical model under former CEO Pekka Lundmark in 2023. However, the change didn't yield the expected results, leading to a return to the earlier horizontal setup. The latest restructuring is likely to lead to job cuts as roles created after the 2023 overhaul may be eliminated under this new strategy.
Job cuts
Job cuts expected across different functions in India
The restructuring is expected to impact the India unit, with job cuts likely across different functions. This includes common/global functions as CNS and MN are merged, creating duplication. The changes stem from the failure of the vertical organizational model that had given business groups operational autonomy globally and in India.
Workforce decline
Decline in Nokia's global workforce and slight increase in India
Nokia's global workforce has been steadily declining over the years. In 2018, after acquiring Alcatel-Lucent, the company had around 103,000 employees. This number fell to 75,600 by the end of 2024. In India, however, Nokia's permanent employee base saw a slight increase from 17,270 in 2024 to 17,708 in 2025. The restructuring is likely to lead to job cuts as the company simplifies its organization into two business segments: Mobile Infrastructure and Network Infrastructure.