Nokia is Cutting 20% of its India Workforce Amid 5G Sales Slump

Nokia has commenced a significant organizational restructuring in India, signaling a new phase in its global cost-cutting initiative. 

Reports from late March 2026 indicate that the company plans to reduce its Indian workforce by approximately 20%, potentially impacting over 3,000 employees. 

This move is part of a broader global strategy to eliminate up to 14,000 roles—nearly one-fifth of its 74,000-strong global headcount—by the end of the year.

Nokia Navigating Financial Headwinds in 5G

The restructuring is a direct response to a sharp decline in Nokia’s business performance in India, which was previously a high-growth market. 

For the fourth quarter of 2025, Nokia reported a 15% year-on-year drop in net sales in the region, falling to 393 million euros from 463 million euros. 

This downturn is attributed to the “normalization” of 5G demand following a rapid rollout period, alongside broader macroeconomic pressures affecting operator spending.

Leadership Transition and Structural Pivot

Accompanying the layoffs is a major leadership shake-up. 

Effective April 1, 2026, Samar Mittal has been appointed as the India Country Business Leader, while Vibha Mehra takes over as India Country Manager. 

These appointments follow the departure of former India head Tarun Chhabra.

Read Also: Meta Layoffs 2026: 700 Jobs Cut as Zuckerberg Pivots Harder Toward AI

Under this new “horizontal” leadership model, the company is merging its Cloud and Network Services (CNS) and Mobile Networks (MN) divisions. 

This consolidation aims to eliminate operational duplication and streamline the “go-to-market” strategy.

Nokia expects the most significant impact on roles created during a previous “vertical” experiment in 2023 as the company reverts to a more integrated, lean structure focused on AI-driven infrastructure and private 5G networks.

Adapting to the AI Supercycle

CEO Justin Hotard has emphasized that while mobile networks remain strategic, the company is pivoting toward AI infrastructure and optical networking. 

By “resetting its cost base,” Nokia intends to redirect capital toward hyperscale data center partnerships and “superintelligence” tools, ensuring the firm remains competitive as global 5G markets mature and the industry shifts toward AI-native network management.

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