Nokia India Layoffs 2026: Up to 20% Workforce Cut in Major Restructuring

Introduction

Nokia is set to implement another round of layoffs in its India operations as part of a significant global restructuring strategy that was first announced in November 2025. The move, which aims to streamline the company and improve efficiency, could impact up to 20% of its workforce in the country, mirroring the scale of its global reduction plans. Alongside the workforce adjustments, the company has announced key leadership changes, appointing Samar Mittal as the new India Country Business Leader and Vibha Mehra as India Country Manager, effective April 1, 2026.

A Strategic Global Overhaul

The current changes stem from a major structural overhaul unveiled by Nokia CEO Justin Hotard in November 2025. The new strategy simplifies the company's complex organization into two primary segments: Network Infrastructure and Mobile Infrastructure. This marks a departure from the structure introduced in 2023 under former CEO Pekka Lundmark, which divided the company into three distinct business groups: Mobile Networks (MN), Network Infrastructure (NI), and Cloud and Network Services (CNS). Businesses that fall outside these core priorities have been grouped separately for potential review or divestment.

Reverting to a Proven Model

According to internal sources, the decision to restructure is a direct response to the underperformance of the 2023 vertical model. That structure granted each business group its own profit and loss responsibility, along with dedicated sales and marketing teams. However, an anonymous company source stated that this shift “did not deliver the desired results.” Consequently, Nokia is reverting to its earlier horizontal setup, where a central country leadership team manages customer relationships and business operations end-to-end. This move is intended to create a more integrated and efficient go-to-market approach.

New Leadership Takes Charge

Leading the revamped India operations are Samar Mittal and Vibha Mehra. Mittal, in his new role as Country Business Leader, will oversee the entire customer portfolio, a position with greater empowerment and similar in seniority to previous country head roles. Before this appointment, he was the Vice President leading the Cloud and Network Services business across the Middle East and Africa. Vibha Mehra, previously the Vice President for Government Relations, will now serve as India Country Manager, responsible for communications, government relations, and corporate social responsibility initiatives. These appointments follow the exit of Tarun Chhabra, the former India country head.

The Impact on the Indian Workforce

The restructuring is expected to lead to significant job cuts. The primary reason is the merger of the Cloud and Network Services (CNS) and Mobile Networks (MN) business units, which creates considerable duplication across many common functions. Roles that were created following the 2023 overhaul are now likely to be eliminated under the simplified two-segment strategy. Sources have indicated that the total number of reductions in India could be around 20%, affecting not just the India-specific business but also various global functions operating out of the country.

Nokia's Official Position

In response to inquiries, a Nokia India spokesperson provided a statement confirming the leadership changes and their alignment with the global strategy. The spokesperson said, “Nokia will leverage the expertise of two senior leaders to strengthen Nokia’s presence in India and support customers. This is aligned with Nokia's global strategy, which was announced in November 2025.” The company maintained its policy of not commenting on individual employee matters.

Employee Headcount and Financial Performance

Despite the impending layoffs, Nokia's permanent employee base in India saw a slight increase, rising to 17,708 in 2025 from 17,270 in 2024. However, this number is still down from 18,200 employees in 2023. The restructuring comes at a time when Nokia's business in India has faced headwinds. In the fourth quarter of 2025, the company's net sales in India dropped by 15% year-on-year to 393 million euros, down from 463 million euros in the same period a year earlier.

Industry-Wide Pressures

Nokia is not alone in facing these challenges. The broader telecom equipment industry is navigating a difficult period characterized by slowing demand from telecom operators. Rival company Ericsson has also been reducing its headcount, having cut approximately 5,000 jobs over the past year, with its CEO indicating that more reductions could be on the way. This context suggests a sector-wide trend of cost optimization and operational realignment.

Analysis of the Strategic Shift

Nokia's decision to revert to a horizontal operating model represents a significant course correction. The failure of the 2023 vertical structure highlights the challenges of operating autonomous business units in a market that demands integrated solutions and unified customer engagement. The new, simplified structure is designed to reduce operational silos, cut overhead costs, and allow the company to respond more nimbly to market demands, particularly the growing influence of AI and cloud technologies in the network infrastructure space. The success of this transition will heavily depend on the new leadership's ability to stabilize the organization and drive growth.

Conclusion

Nokia's restructuring in India is a critical step in its global effort to become a leaner and more competitive organization. The planned layoffs, while difficult, are part of a broader strategy to eliminate redundancies and refocus resources on core growth areas. With new leadership in place, the company aims to navigate the current market downturn and position its Indian operations for long-term stability and success. The focus now shifts to the execution of this new strategy and its impact on both employees and customers in the region.