Nokia appoints new India head as it prepares for up to 10,000 global layoffs

Nokia on Tuesday announced that it has appointed Tarun Chhabra as the new head of Nokia India. This change in leadership comes at a time when the company is facing challenging market conditions and has announced plans to reduce its global workforce by 11,000 to 14,000 jobs, reported Moneycontrol. The strategic move aims to enhance operational efficiency and adapt to evolving market dynamics.

Tarun Chhabra, who previously served as the head of mobile networks and senior vice president at Nokia, will assume his new role effective April 2024. He succeeds Sanjay Malik, who has been leading Nokia's Indian market operations for nearly eight years. Chhabra's responsibilities will include overseeing the Indian market and managing the mobile networks group's business in India, reporting to Tommi Uitto, the president of Mobile Networks at Nokia.

Despite Nokia's robust financial performance in the Indian market last year, driven by significant 5G contracts with leading telecom operators, the company has experienced a slowdown in 5G deployment by Indian telcos. This has led to a 33% decline in net sales in the Indian region during the October-December 2023 period. 

The restructuring process in India began following the global announcement in October and continued until the end of December. Some employees were asked to resign, while others opted for voluntary exits due to role adjustments. Impacted employees were offered severance packages to support their transition out of the company.

The exact number of layoffs in India has not been disclosed, but the global job cuts are expected to trim Nokia's costs by up to €1.2 billion (nearly $1.3 billion) cumulatively by the end of 2026. In 2022, Nokia had 86,900 employees situated in around 130 locations worldwide, with approximately 38,000 in Europe. The cost-cutting measures are a response to a 20% year-on-year decline in third-quarter net sales to 4.98 billion euros and a 69% plunge in profit over the same period to 133 million euros.

As Nokia navigates these changes, the company remains focused on long-term growth, sustainability, operational excellence, and customer satisfaction. The appointment of Tarun Chhabra as the new head of Nokia India is a key part of this broader initiative, reflecting the company's commitment to maintaining a strong presence in one of its key markets while addressing the need for cost efficiencies and organizational agility.

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