Nokia to close Hangzhou R&D center and cut 1,600 jobs in China

Nokia is restructuring its operations in China, including the planned closure of its research and development center in Hangzhou. This move is expected to result in approximately 1,600 job cuts. Industry reports suggest that other locations in Beijing, Chengdu, Qingdao, and Shanghai may also be affected by this wave of restructuring, which is intended to align China's operations with Nokia's global model.

The company's workforce in the Greater China region has seen a significant decline, dropping from 13,700 employees in 2020 to 7,200 by 2025. Nokia has noted that its China business has faced continuous declines in recent years.

Despite the restructuring costs, which are projected to rise to 800 million euros for 2026, Nokia's growth in the AI and cloud segments has provided financial support. The company reported a comparable profit per share of 0.07 euros in the second quarter, driven by 2.8 billion euros in orders within the AI and cloud sectors.