Kuaikeji, August 16th – According to Light Reading, Nokia plans to close its R&D center in Hangzhou and will lay off approximately 1,600 employees.

This move represents Nokia's latest step in gradually withdrawing from the Chinese market. Affected by its failure to secure major contracts in the 5G era, Nokia's business in China continues to shrink, with this trend accelerating.

Nearly two years ago, Nokia announced layoffs of 2,000 employees in China, primarily due to the sluggish global network equipment market and pressure on the company's profitability.

The latest news indicates that the closure of the Hangzhou R&D center will result in the loss of another 1,600 jobs. Screenshots and internal emails obtained by Light Reading confirm the shutdown plan and show that affected employees have begun internal communications.

Additionally, there are signs that Nokia's other factories in Beijing, Chengdu, Qingdao, and Shanghai may also be closed as part of the latest restructuring plan.

Nokia subsequently confirmed the shutdown arrangements for the Hangzhou factory to Light Reading via email. A company spokesperson stated, 'As previously communicated, Nokia has been taking steps to better align its operations in China with its global operating model. In recent years, our business in China has continued to decline, so we are adjusting our operational footprint in China to address this reality.'

The size of Nokia's workforce in Greater China has significantly decreased over the past few years. The 2020 annual report showed an average of 13,700 employees in the region, which had dropped to just 7,200 by 2025.

During the same period, affected by multiple rounds of restructuring, Nokia's global workforce decreased from approximately 92,000 to 78,000, a significant decline from the peak of 103,000 in 2018. Before the release of its second-quarter financial report, the company expected its global workforce to drop to around 70,000 by the end of 2026, compared to 74,100 at the end of last year.