Finnish network vendor Nokia is set to close its Munich office, in a move that will result in 700 layoffs in Germany.
As reported by Heise, Nokia plans to close the Munich site by 2030. Layoffs are set to take place in two waves, with more than 300 jobs to be cut early next year, and further jobs in Munich to be lost by 2030.
Heise reports that Nokia confirmed the cuts to the publication, stating that the cuts are part of its global strategy.
Nokia previously outlined plans in 2023 to cut 14,000 jobs globally by 2026 as part of an effort to save €800 million ($928 million) and €1.2 billion ($1.39bn) by 2026. At present, Nokia has around 2,500 employees in Germany.
“This will strengthen our capacity for long-term growth and customer loyalty, while ensuring that our teams have the framework conditions necessary for their success,” said Nokia in a statement.
The plans have been heavily criticized by trade unions in the country, including IG Metall.
“Especially in times of geopolitical challenges, it is a fatal signal when a key company scales back its presence in Germany,” said Daniele Frijia, managing director of IG Metall Munich and member of Nokia’s German supervisory board. “Instead of cutting jobs, Nokia should invest in the future.”
The plans come amid Germany’s plans to move away from Chinese vendors such as Huawei and ZTE in favor of European alternatives, including Nokia and Ericsson.
IG Metall said it expects the plans to affect workers at the Düsseldorf, Stuttgart, Ulm, and Nuremberg sites.
It comes weeks after chipmaker giant Nvidia announced an investment of $1bn into Nokia for a 2.9 percent stake in the vendor.