Nokia outlined plans to cut a third of its local workforce at French subsidiary Alcatel-Lucent International, amounting to 1,233 jobs, blaming cost pressures on the market.

The move was presented to the European and French Works Councils today (22 June), and will mainly affect the R&D segments of the company at its Paris-Saclay and Lannion sites, Nokia said in a statement.

Its three French affiliate companies, Radio Frequency Systems; Nokia Bell Labs France; and Alcatel Submarine Networks are not affected.

Cost cutting
Nokia explained it had unveiled a global cost savings programme in October 2018 and it was reinforcing efforts to evaluate its R&D activities which “led to significant adjustments globally”.

“Implementation already started in some countries and the project is now impacting Nokia’s operations in France,” said a Nokia representative.

While Nokia indicated the move had been part of its plans, there is likely to be a backlash in the country.

Nokia acquired the French company in 2016 for around €15.6 billion, pushing the deal through French regulators by promising to keep jobs and expand R&D.

Reuters reported Nokia had become free of such commitments from this month.

In a statement quoted by the news agency, France’s CFE-CGC workers union said Nokia’s move was a low-cost strategy and contrary to all commitments made.

“Nokia is laughing at everyone, first and foremost the French government,” said the union.