Nokia - Company Announcement

Nokia launches headcount reductions as part of global synergy and transformation program

Nokia Corporation
Stock Exchange Release
April 6, 2016 at 12:15 (CET +1)

Nokia launches headcount reductions as part of global synergy and transformation
program

Espoo, Finland - Nokia announced today that it is beginning actions to reduce
company personnel globally as part of its synergy and transformation program. As
previously announced, Nokia is targeting EUR 900 million of operating cost
synergies to be achieved in full year 2018 related to the acquisition of
Alcatel-Lucent. At the same time, Nokia is taking steps to adapt to challenging
market conditions and to shift resources to future-oriented technologies such as
5G, the Cloud and the Internet of Things. As part of the program, the company
also continues to target worldwide savings in real estate, services,
procurement, supply chain and manufacturing.



The headcount reductions are expected to take place between now and the end of
2018, consistent with the company's synergy target timeline.  Reductions will
come largely in areas where there are overlaps, such as research and
development, regional and sales organizations as well as corporate functions.
Nokia outlined these areas on October 29, 2015, when updating its synergy
target.



To start the process, Nokia representatives are meeting today with the company's
two European Works Councils. Similar meetings and consultations with employee
representatives are taking place in almost 30 countries in the coming weeks.
Processes and timelines will vary from one country to another.



"These actions are designed to ensure that Nokia remains a strong industry
leader," said Nokia President and CEO Rajeev Suri. "When we announced the
acquisition of Alcatel-Lucent we made a commitment to deliver EUR 900 million in
synergies - and that commitment has not changed. We also know that our actions
will have real human consequences and, given this, we will proceed in a way that
that is consistent with our company values and provide transition and other
support to the impacted employees."



Nokia plans to report on the implementation of the synergy and transformation
program in connection with its quarterly earnings releases.



About Nokia
Nokia  is a global  leader in the  technologies that connect  people and things.
Powered by the innovation of Bell Labs and Nokia Technologies, the company is at
the  forefront of creating and licensing  the technologies that are increasingly
at the heart of our connected lives.

With  state-of-the-art software, hardware and services  for any type of network,
Nokia   is   uniquely   positioned  to  help  communication  service  providers,
governments,  and large enterprises deliver on  the promise of 5G, the Cloud and
the Internet of Things. www.nokia.com

Media Enquiries:
Nokia
Communications
Tel. +358 (0) 10 448 4900
Email: press.services@nokia.com


RISKS AND FORWARD-LOOKING STATEMENTS

It should be noted that Nokia and its businesses are exposed to various risks
and uncertainties, and certain statements herein that are not historical facts
are forward-looking statements, including, without limitation, those regarding:
A) our ability to integrate Alcatel Lucent into our operations and achieve the
targeted business plans and benefits, including targeted synergies in relation
to the acquisition of Alcatel Lucent announced on April 15, 2015 and closed in
early 2016; B) expectations, plans or benefits related to our strategies,
headcount reductions and growth management; C) expectations, plans or benefits
related to future performance of our businesses; D) expectations, plans or
benefits related to changes in our management and other leadership, operational
structure and operating model, including the expected characteristics, business,
organizational structure, management and operations following the acquisition of
Alcatel Lucent; E) expectations regarding market developments, general economic
conditions and structural changes; F) expectations and targets regarding
financial performance, results, operating expenses, taxes, cost savings and
competitiveness, as well as results of operations including targeted synergies
and those related to market share, prices, net sales, income and margins; G)
outcome of pending and threatened litigation, arbitration, disputes, regulatory
proceedings or investigations by authorities; H) expectations regarding
restructurings, investments, uses of proceeds from transactions, acquisitions
and divestments and our ability to achieve the financial and operational targets
set in  connection with any such restructurings, investments, divestments and
acquisitions; and I) statements preceded by or including "believe," "expect,"
"anticipate," "foresee," "sees," "target," "estimate," "designed," "aim,"
"plans," "intends," "focus," "continue," "project," "should," "will" or similar
expressions. These statements are based on our management's best assumptions and
beliefs in light of the information currently available to it. Because they
involve risks and uncertainties, actual results may differ materially from the
results that we currently expect. Factors, including risks and uncertainties,
that could cause such differences include, but are not limited to: 1) our
ability to execute our strategy, sustain or improve the operational and
financial performance of our business or correctly identify or successfully
pursue business opportunities or growth; 2) our ability to achieve the
anticipated business and operational benefits and synergies from the Alcatel
Lucent transaction, including our ability to integrate Alcatel Lucent into our
operations and within the timeframe targeted, and our ability to implement our
organizational and operational structure efficiently; 3) our dependence on
general economic and market conditions and other developments in the economies
where we operate; 4) our ability to effectively and profitably compete and
invest in new competitive high-quality products, services, upgrades and
technologies and bring them to market in a timely manner; 5) our ability to
retain, motivate, develop and recruit appropriately skilled employees while
reducing our headcount; 6) our ability to manage our manufacturing, service
creation, delivery, logistics and supply chain processes, and the risk related
to our geographically concentrated production sites; 7) the impact of an
unfavorable outcome of litigation, arbitration, agreement-related disputes or
allegations of product liability associated with our businesses; 8) our ability
to optimize our capital structure as planned and re-establish our investment
grade credit rating or otherwise improve our credit ratings; 9) our ability to
achieve targeted benefits from or successfully implement planned transactions,
as well as the liabilities related thereto; 10) our ability to manage and
improve our financial and operating performance, cost savings, competitiveness
and synergy benefits after the acquisition of Alcatel Lucent; 11) unexpected
liabilities with respect to pension plans, insurance matters and employees; and
12) unexpected liabilities or issues with respect to the acquisition of Alcatel
Lucent, including pension, postretirement, health and life insurance and other
employee liabilities or higher than expected transaction costs, as well as the
risk factors specified on pages 69 to 87 of our annual report on Form 20-F filed
on April 1, 2016 under "Operating and financial review and prospects-Risk
factors", as well as in Nokia's other filings with the U.S. Securities and
Exchange Commission. Other unknown or unpredictable factors or underlying
assumptions subsequently proven to be incorrect could cause actual results to
differ materially from those in the forward-looking statements. We do not
undertake any obligation to publicly update or revise forward-looking
statements, whether as a result of new information, future events or otherwise,
except to the extent legally required.




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