Nokia has laid off nearly 2,000 employees in Greater China and plans to cut an additional 350 jobs across Europe, according to reports by Reuters. The layoffs are part of the company's broader efforts to reduce costs as it seeks to navigate challenging market conditions and declining sales.

The cuts represent about 20% of Nokia's workforce in Greater China, where the company had 10,400 employees as of December 2023. A Nokia spokesperson confirmed the planned European job cuts but declined to comment on the layoffs in China. These reductions are part of Nokia's previously announced plan to cut up to 14,000 jobs by 2026, with the goal of saving between €800 million and €1.2 billion ($868 million to $1.3 billion).

Nokia's presence in China has diminished significantly in recent years. Once a major market for the company, accounting for 27% of its net sales in 2019, the region has seen reduced contracts for Nokia and fellow telecom equipment maker Ericsson following bans on Huawei by western countries. In the latest quarter, Nokia reported that less than 6% of its net sales came from Greater China.

Despite the downsizing, Nokia still operates several offices in cities such as Beijing, Shanghai, Hong Kong, and Taiwan, where it services clients like China Mobile.

On Thursday, Nokia reported a 9% increase in third-quarter operating profit, largely driven by cost-cutting efforts. However, the company's net sales fell short of market expectations, resulting in a 4% drop in its share price. Nokia CEO Pekka Lundmark expressed satisfaction with the progress of the cost reductions, stating that the company is "ahead of schedule" in achieving its savings targets.

The company has already achieved €500 million in gross savings and continues to work towards its goal of reducing its global workforce to between 72,000 and 77,000 employees by 2026. Nokia's current employee base stands at just over 78,500.