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To Understand NOK’s Belt-Tightening, Look to Alcatel-Lucent Deal

Rachel Gunter
To Understand NOK’s Belt-Tightening, Look to Alcatel-Lucent Deal

Last month, Nokia (NOK) detailed a new cost-savings plan under which it’s seeking to cut its annual expenses by ~$800 million by 2020—that’s on top of the $1.4 billion cost-cutting plan it announced in 2016, which it said it aimed to achieve by the end of 2018. Nokia’s belt-tightening measures are tied to its 2016 acquisition of Alcatel-Lucent. In an interview with CNBC earlier this month, Nokia CEO Rajeev Suri said that the integration of Alcatel-Lucent was designed to unfold in phases and that the company was currently in the second phase of that process.