Nokia CEO Thinks Longer 5G Cycle Gives Him Time to Catch Up

Investors expressed their doubts over the plans, shares fall
Firm seeks to take back market share from Ericsson, Huawei

Pekka Lundmark
Photographer: Roni Rekomaa/Bloomberg

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By Kati Pohjanpalo

March 18, 2021 at 12:32 PM UTC

Updated on

March 18, 2021 at 5:02 PM UTC

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Investments into next-generation wireless networks will span a much longer time than the 4G cycle, giving underdog Nokia Oyj time to catch up with rivals that zoomed past it for early rollouts, according to its chief executive.

The Finnish telecommunications gear maker on Thursday presented an outline of how it plans to regain competitiveness by 2023, with Chief Executive Officer Pekka Lundmark trimming as many as 10,000 jobs in two years to pour the money saved into new hires in 5G. The actions are necessary, but not a sign that Nokia would have missed the boat, he said.