Nokia said it plans to save 700 million euros a year by 2020 as part of its latest reorganization, which will include substantial job cuts, the Financial Times reports. The telecommunications equipment maker will also create a new "business" unit, led by its strategy director Kathrin Buvac.
Nokia has already reduced costs as part of its acquisition and integration into Alcatel-Lucent. The latest plan will cost the Finnish group € 900 million and it is necessary for the company to achieve its long-term profit targets, according to Chief Executive Rajeev Suri.
"These are important steps that give us more confidence in our ability to meet our financial commitments by 2020," he said.
Although revenue rose more than expected at 5.5 billion euros, the quarter ended in a loss in profit margin. Nokia's net income was 309 million euros.