Once recognized as the world’s leading mobile phone manufacturer, Nokia has recently come into the spotlight following its announcement to reduce its global workforce by approximately 14,000 positions. This move accounts for roughly 20 percent of its total employees, which stands at around 74,000, with just over 17,000 based in India. This significant reduction has sparked inquiries about the company’s current operations, especially as it has shifted away from direct phone manufacturing.

From Mobile Giant to Tech Infrastructure Player

Nokia’s legacy as a phone maker came to an end when it sold its mobile devices and services division to Microsoft in 2014, after experiencing substantial losses in the smartphone sector. The company has maintained alternative business avenues, focusing on telecom infrastructure, mapping services, and advanced technologies, areas in which it continues to thrive. Although it no longer produces phones, Nokia has licensed its technology to HMD Global, which now markets mobile devices under the Nokia brand.

Powering Global Connectivity Behind the Scenes

Nokia primarily operates in the telecommunications sector, providing essential network infrastructure that facilitates connectivity for fixed, mobile, and transport networks. This involves creating the technologies and equipment necessary for mobile devices to communicate and access the internet. The company predominantly functions behind the scenes, delivering backbone technology that enables network operation and interconnectivity.

A Key Driver in the Global 5G Rollout

The corporation is a significant player in the deployment of 5G technology for telecom operators. To date, Nokia has entered into more than 400 commercial agreements and collaborates with over 1,000 private wireless clients. The firm also develops artificial intelligence solutions designed to assist telecom companies in managing complex networks efficiently.

Global Reach, Innovation, and Future Tech Focus

Operating in over 150 nations, Nokia’s systems support more than 4.4 billion mobile subscriptions globally. The company boasts an extensive patent portfolio, holding over 26,000 patent families, and has been awarded 10 Nobel Prizes for its technological innovations. Nokia’s current initiatives cover various domains, including connectivity solutions for artificial intelligence and the development of autonomous networks capable of self-management with minimal human input. Furthermore, Nokia is actively engaged in research for 6G technologies.

How Nokia Still Earns From Every Smartphone

Revenue for Nokia is generated not solely through the sale of telecommunications gear but also through licensing royalties from its patents. As a pioneer in networking, the company holds critical patents utilized in numerous devices, including smartphones. This results in a steady stream of income for Nokia, allowing it to profit from each phone sold, even though it does not produce them.

Restructuring Strategy Amid AI-Driven Demand

The recent layoffs align with a broader restructuring strategy unveiled by Nokia in November 2025. This strategic realignment aims to divide the business into two principal operating segments: Network Infrastructure and Mobile Infrastructure. The overarching intention is to enhance alignment with customer needs and expedite innovation in response to increased demand for advanced connectivity driven by the AI supercycle.

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