Nokia logoNokia announced initial actions to reduce company personnel, part of a "synergy and transformation program" following the acquisition of Alcatel-Lucent. Nokia is targeting €900 million of operating cost synergies to be achieved by the end of 2018.

The headcount reductions will come largely where there are overlaps in Nokia and Alcatel-Lucent personnel, such as research and development, regional and sales organizations and corporate functions. In addition to staff, Nokia will also cut costs in real estate, services, procurement, supply chain and manufacturing.

Beginning on Wednesday, April 6, Nokia representatives were meeting with the company's two European Works Councils and employee representatives in almost 30 countries. The notification meetings will take several weeks, with the headcount reductions completed by the end of 2018.

"These actions are designed to ensure that Nokia remains a strong industry leader," said Nokia President and CEO Rajeev Suri. "When we announced the acquisition of Alcatel-Lucent we made a commitment to deliver €900 million in synergies – and that commitment has not changed. We also know that our actions will have real human consequences and, given this, we will proceed in a way that that is consistent with our company values and provide transition and other support to the impacted employees."

Beyond cost reduction, Nokia is shifting resources to 5G, the Cloud and the Internet of Things.