After Ericsson, Nokia leaves Russia in turn

0
45

In the wake of Ericsson, it’s Nokia’s turn to pack up. The Finnish telecom giant announced on Tuesday in a press release that it would leave Russia. This decision is the consequence of the war in Ukraine and the deterioration of relations between Moscow and the Old Continent. It was clear to Nokia from the early days of the invasion of Ukraine that maintaining our presence in Russia would not be possible.”said Pekka Lundmark, the boss of the Finnish group, on Twitter.

This decision comes the day after that of its rival, the Swedish Ericsson, who also chose to suspend ” for an indefinite period “ its activities in the country. Nokia has some 2,000 employees in Russia, of which about 200 work in research and development. But unlike Ericsson, which decided to place its 600 employees on paid leave, Nokia will separate from its troops.

“Unfortunately, in these circumstances, job cuts are inevitablea spokeswoman told AFP. However, for some positions outside of Russia, we will offer transfers. The safety and well-being of our employees is our priority and we want to make these changes in an orderly fashion. »

Russia weighs less than 2% of the group’s turnover

Nokia will spend a provision of 100 million euros in its accounts for the first quarter, the results of which will be revealed at the end of the month. The Finnish group emphasizes that Russia weighs less than 2% of its total turnover. He says he is maintaining his financial forecasts for this year due to high demand in other regions”. At midday, the group’s share lost 1% to 4.88 euros on the Helsinki Stock Exchange in a market down slightly (-0.1%).

With the departures of Nokia and Ericsson, there are no more European telecom equipment manufacturers in Russia. That leaves a freeway for Huawei, China’s telecom equipment champion, which is expected to carve out the lion’s share in that country for the rollout of 4G and 5G networks. The Shenzhen group, which still suffers from harsh US sanctions, has been driven out of many markets. This is the case in the United States, but also in many European countries.

READ ALSO | 2021, a nightmarish year for Huawei: sales have plummeted by almost 30%