Finnish telecom equipment maker Nokia has decided to shut down almost all of its operations in China by the end of the year, citing the steady drop in business in the country.
A Nokia spokesperson stated that the company has decided against better aligning its operations in China after the business in the country slumped over the recent years. In an email, the spokesperson said, “Thus, we are adjusting our operational footprint in China to address this reality.”
Although the total number of employees who would be affected by the closure of the establishment remains unclear, Nokia had about 7,200 staff in mainland China, Hong Kong, and Taiwan at the end of 2025. Its annual report showed it had sites in cities such as Beijing, Shanghai, Hangzhou, Chengdu, and Qingdao.
When the business in China suffered, Nokia Corporation in the US reported 3% year-over-year growth in comparable net sales in Q4 of 2025, on a constant-currency and portfolio basis, while reported sales increased 2%. Growth was recorded across both its network infrastructure and mobile networks businesses.
Comparable gross margin also improved by 90 basis points year-over-year to 48.1%, supported by a stronger product mix that offset a lower contribution from Nokia Technologies. However, reported gross margin fell 120 basis points to 44.9% due to higher restructuring-related charges during the quarter.
Meanwhile, the comparable operating margin declined 90 basis points to 17.3%, mainly due to increased investments in the Network Infrastructure business, including the integration of Infinera. On a reported basis, operating margin fell more sharply by 560 basis points to 8.8%, primarily reflecting the impact of higher restructuring costs.
