HELSINKI — Telecom networks provider Nokia has reported lower third-quarter earnings and says it will start a new cost-cutting scheme as it waits for demand for the new 5G systems to pick up.
The Finnish company said Thursday that its net profit for the July-September period stood at 309 million euros ($352 million), down from 516 million euros a year earlier. Sales were nearly flat at 5.5 billion euros.
Nokia announced a cost-cutting program aiming for annual savings of 700 million euros by the end of 2020. It didn’t provide details on the expected global job cuts.
The company has struggled with the industry’s low growth as demand for the existing 4G networks has peaked and operators haven’t been yet investing heavily in the faster but more expensive next-generation 5G networks.