Nokia India, a prominent player in the telecommunications industry, has recently witnessed significant changes in its leadership and organizational structure as part of a global restructuring initiative. The restructuring, aimed at enhancing operational efficiency and aligning with evolving market dynamics, has led to leadership transitions and layoffs across various functions within the company.
Leadership Transition: Tarun Chhabra, previously the head of mobile networks and senior vice president at Nokia, has assumed the role of the new India head following an organizational realignment. Chhabra’s appointment comes as part of a broader restructuring effort within Nokia, which aims to streamline operations and drive growth amidst market challenges. He will be taking over from Sanjay Malik, the former senior vice president who has been instrumental in leading Nokia’s operations in India for nearly eight years. Malik will continue his role within the company until March 31, 2024, facilitating a smooth transition of responsibilities to Chhabra.
Global Restructuring Impact: The leadership changes at Nokia India are reflective of the company’s global restructuring announced in October last year. As part of this initiative, Nokia plans to optimize its workforce by reducing staff numbers globally, with an estimated reduction of 11,000-14,000 jobs. The restructuring aims to enhance operational agility and position the company for sustainable growth in the long term.
Operational Changes and Job Cuts: In line with the global restructuring, Nokia India has initiated rationalization across functions, including sales and marketing, leading to job cuts. The restructuring has impacted several employees in central functions and business groups, with many being asked to resign. Despite Nokia India’s commendable financial performance in the previous year, driven by substantial 5G contracts with leading Indian telecom operators, the company has faced challenges due to a slowdown in deployment by Indian telcos.
Impact on Employees: The layoffs at Nokia India have affected employees across various levels, including senior executives and account managers servicing telecom operator customers. While some impacted employees were offered severance packages, others opted to leave the company independently due to role changes. The layoffs, which commenced following the global announcement in October, were executed until December-end, with affected employees expected to leave the company by mid-March.
Future Outlook: Nokia India remains committed to navigating the evolving telecommunications landscape and delivering innovative solutions to its customers. The company continues to focus on enhancing operational efficiency, fostering a customer-centric approach, and driving sustainable growth amidst market challenges.
The leadership transition and organizational changes at Nokia India signify the company’s strategic realignment to adapt to market dynamics and reinforce its position as a leading player in the telecommunications industry.