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[BUSINESS] · China, Finland · 8 sources

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Nokia to exit most of China market and cut significant workforce

Nokia is executing a major withdrawal from the Chinese market, planning to close most of its facilities and significantly reduce its workforce by the end of 2026. The company intends to maintain only after-sales services in the region, describing the move as a “gradual exit from the market.”

The restructuring impacts both the mobile networks and network infrastructure divisions. As part of this realignment, Nokia is closing its research and development center in Hangzhou, a move expected to result in approximately 1,600 job losses. At the end of 2025, the company employed roughly 7,200 people across mainland China, Hong Kong, and Taiwan.

The retreat follows a sustained decline in Nokia's Chinese business. Revenue in the country dropped from 1.84 billion euros in 2019 to 913 million euros in 2025, while the market's contribution to the group's total revenue fell from 7.9% to 4.6%. This decline is attributed to increased competition from domestic providers like Huawei and ZTE, as well as a preference among Chinese state-owned enterprises and public bodies for local technology.

Entities

China · Ericsson · Finland · Hangzhou · Helsinki · Huawei · Nokia · Nokia Shanghai Bell · ZTE

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