Nokia will attempt to reduce costs by €800m to €1.2bn (£695m to £1bn) by 2026, which could affect 16 per cent of its workforce, the company revealed.

The telecommunications company reported that sales slumped by 20 per cent between July and September, blaming the fall on slowing demand for 5G equipment. As a result, Q3 profits fell by 70 per cent to €133m (£116m) compared with €428m a year earlier.

Nokia had aimed to balance out the slowdown in demand in North America by expanding its business in India, but the strategy has not been successful, as sales in the Asian nation had only been “moderate”. 

“The most difficult business decisions to make are the ones that impact our people,” said Pekka Lundmark, Nokia chief executive. “We have immensely talented employees at Nokia and we will support everyone that is affected by this process.

“Resetting the cost base is a necessary step to adjust to market uncertainty and to secure our long-term profitability...