In response to challenging market conditions and its global plans to reduce the workforce by 11,000 to 14,000 jobs, Nokia has appointed Tarun Chhabra as the new head of Nokia India. This strategic leadership change is part of Nokia’s broader initiative to adapt to evolving market dynamics and enhance operational efficiency.
Leadership Transition:
Tarun Chhabra, formerly the head of mobile networks and senior vice president at Nokia, is set to assume his new role as the head of Nokia India from April 2024. He succeeds Sanjay Malik, who has been at the helm of Nokia’s Indian market operations for nearly eight years. Chhabra’s responsibilities will include overseeing the Indian market and managing the business of the mobile networks group in India. He will report to Tommi Uitto, the president of Mobile Networks at Nokia.
Market Challenges:
Despite Nokia’s robust financial performance in the Indian market last year, driven by substantial 5G contracts with leading telecom operators, the company has faced challenges with the slowdown in 5G deployment by Indian telcos. This resulted in a 33% decline in net sales in the Indian region during the October-December 2023 period.
Global Workforce Restructuring:
The global restructuring process, announced in October, continued until December, affecting Nokia’s operations in India. Some employees were asked to resign, while others opted for voluntary exits due to role adjustments. The global job cuts are expected to reduce Nokia’s costs by up to €1.2 billion (nearly $1.3 billion) cumulatively by the end of 2026.
Company’s Response:
As Nokia implements these changes, it remains focused on long-term growth, sustainability, operational excellence, and customer satisfaction. The appointment of Tarun Chhabra underscores Nokia’s commitment to maintaining a strong presence in one of its key markets while addressing the need for cost efficiencies and organizational agility.
