Nokia to cut 14,000 jobs due to declining interest in 5G

Nokia CEO Pekka Lundmark predicts that the advent of virtual and augmented reality headsets will help boost demand. Photo: Zhu Haipeng/VCG via Getty Images

He said: “The main reason operators were hesitant with their investments was that their 5G monetization was slower than expected.”

“ And the reason for this was that they had difficulty introducing new applications that would take advantage of the capabilities of 5G.

“They were disappointed in their ability to monetize 5G.”

The company noted a decline in sales in USA. and slower growth in India.

Mr. Lundmark predicted that the emergence of new devices such as augmented reality (AR) and virtual reality (VR) headsets will boost demand.

He said: “We need to make it easier for them to create new use cases. I believe that once we see these new immersive AR/VR devices on the market, we will see a whole new range of applications that will drive capacity demands.»

Nokia has significant operations in the UK, although It does not say how many employees the company has in the UK, out of 37,700 across Europe.

Nokia and Ericsson have been spurred by government demands that telecom operators rip Huawei equipment from their networks. , although the government has pushed back the deadline.

In 2013, the Finnish company sold its mobile phone business to Microsoft in a deal worth €5.4 billion, although the division failed to compete with Apple and Samsung.