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Nokia reports huge loss for the quarter

Written by Andre Yoskowitz @ 15 May 2016 4:57

Nokia reports huge loss for the quarter

Nokia has released their financial earnings report for the first quarter, posting a huge 613 million net loss.
During the quarter, the company completed its 15.6 billion acquisition of Alcatel-Lucent and also had significant goodwill impairment charges and restructuring costs.

"I am pleased that we were able to deliver solid profitability in what is typically a seasonally weak quarter, and at a time when the risk of integration-related disruption was high,"
said Nokia CEO Rajeev Suri. "While our revenue decline was disappointing, the shortfall was largely driven by Mobile Networks, where the challenging environment is not a surprise."

In the coming years, Nokia will reduce costs with some layoffs and more cost-cutting measures expected to save the company 900 million moving forward. "The headcount reductions are expected to take place between now and the end of 2018, consistent with Nokia's synergy target timeline," said Nokia. "Reductions will come largely in areas where there are overlaps ... As part of the program, Nokia also continues to target savings in real estate, services, procurement, supply chain, and manufacturing."


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