Nokia's recent global restructuring, announced in November 2025, has sparked concerns about potential layoffs in India, with sources citing a possible 20% reduction in the workforce. This move, part of a broader strategy shift, marks a significant change from Nokia's previous organizational structure, which was introduced in 2023 under former CEO Pekka Lundmark. The company is now simplifying its operations into two primary segments: Network Infrastructure and Mobile Infrastructure, with a focus on streamlining and aligning with emerging AI-driven demand. This shift comes amidst a decline in Nokia's India performance, with net sales dropping 15% year-on-year in the fourth quarter of 2025. The restructuring has already led to the elevation of Samar Mittal as India Country Business Leader and Vibha Mehra as India Country Manager, while Tarun Chhabra has exited the role of India country head. In my opinion, this restructuring is a strategic move by Nokia to adapt to the changing market dynamics and focus on core business areas. However, the potential layoffs in India raise questions about the impact on employees and the company's commitment to the Indian market. The company's decision to simplify its organization and merge certain business segments could lead to job cuts, particularly in non-core business areas. This mirrors the earlier restructuring, which saw layoffs across functions. The logic behind this move is to create duplication across common functions and streamline operations. However, the impact on employees and the company's presence in India remains to be seen. The elevation of Samar Mittal and Vibha Mehra to key leadership roles is a positive step, as they will drive Nokia's go-to-market strategy and shape its engagement with telecom operators, AI and cloud providers, and mission-critical enterprises. Nevertheless, the potential layoffs in India are a cause for concern, and the company needs to ensure that it supports its employees during this transition. In my view, Nokia's restructuring is a necessary step to adapt to the changing market dynamics, but the company needs to be mindful of the impact on its employees and the Indian market. The company's commitment to India should be a key consideration, and it needs to ensure that it maintains a strong presence in the country despite the potential layoffs.
