Nokia plans to reduce its workforce dramatically and shut nearly all its sites in mainland China by the end of 2026, according to multiple sources [1, 2, 3]. The company’s China operations have been shrinking steadily in recent years, which prompted management to adjust its presence in the market [1, 3].

At the close of 2025, Nokia employed about 7,200 people across mainland China, Hong Kong, and Taiwan. The upcoming cuts will target most of these positions in mainland China, with only after-sales services expected to remain active [2].

The decision was communicated internally to employees in early August 2026 through a video conference from Nokia’s headquarters in Helsinki [2]. Some former employees have already received severance packages that include payments based on their length of service plus an additional three months’ salary [2].

A Nokia spokesperson said, "Thus, we are adjusting our operational footprint in China to address this reality," referring to the decline in its local business [1, 3].

The company will execute the majority of the workforce reductions and site closures in stages, aiming to complete the process by the end of 2026 [1, 2, 3].