The stock of Nokia Oyj (ADR) (NYSE:NOK) closed at $5.98 and maintained the same position in yesterday’s trading session. On Monday, the junior economy minister of France outlined that this company was reaffirming its dedication to creating research and development jobs in the country. However, the provider still remains well placed to cut a large number of jobs in other areas.
In 2016, the Finnish telecoms maker purchased Alcatel Lucent SA (ADR) (NYSE:ALU). It was at that particular point that it expressed its intention of giving jobs to about 500 persons in research and development. It also upheld its decision to maintain a workforce of about 4,200 employees and that will be over a period of two years.
Last month, the provider made an announcement about its plan to scrap 600 jobs in central and support areas. It hopes to reach this particular goal by the end of 2019. The French government together with the trade unions have been scrutinizing such cuts with the objective of finding out whether or not such cuts violate earlier pledges.
Benjamin Griveaux, a Junior Economy Minister, while speaking to a number of reporters in a union meeting opined, “A very clear commitment has been made: no cuts from the 4,200 jobs … and something else important, 2,500 jobs in R&D in total before the end of 2018.”
Several trade unionists have come forward to state that after 10 days the process of implementing the planned 600 job cuts will be resuming. The unionists have outlined that by the end of this year Nokia will have succeeded at creating 330 of the 500 promised jobs in research and development.
President Emmanuel Macron praised the company for its efforts. Nokia’s commitment to maintain a 4,200 strong workforce as well as its creation of the R&D jobs were great moves according to Macron.
Nokia has had its fair share of challenges. However, it has been doing all within its means to remain competitive in the market.