Nokia kicks off cost-cutting plan after third-quarter profit drops 27 percent year-on-year

HELSINKI (Reuters) – Telecom network equipment maker Nokia on Thursday announced a new cost-cutting program after reporting quarterly profits down 27 percent from a year ago.

FILE PHOTO: The new Nokia 8110 is seen during the Mobile World Congress in Barcelona, Spain, February 27, 2018. REUTERS/Yves Herman/File Photo

The Finnish company, rival to Sweden’s Ericsson and China’s Huawei [HWT.UL], said it was targeting annual cost savings of 700 million euros by the end of 2020, without elaborating the scale of expected job reductions.

Nokia will this year complete a 1.2 billion euro cost-saving program launched after its 2016 acquisition of Franco-American Alcatel-Lucent.

Nokia’s third-quarter non-IFRS operating profit came in at 487 million euros ($555 million), broadly in line with analysts’ mean forecast of 492 million euros in a Reuters poll.

Reporting by Jussi Rosendahl and Anne Kauranen, additional reporting by Teis Jensen in Copenhagen, editing by Terje Solsvik

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