Nokia to Shut Hangzhou R&D Hub, Cut 1,600 Jobs; China Restructuring Costs Rise to 800 Million Euros

Nokia announced the closure of its research and development center in Hangzhou, resulting in the loss of about 1,600 jobs. Chief Executive Justin Hotard said the company decided to adjust its operational footprint in China due to declining market share. Nokia had previously taken full control of its Chinese business, Nokia Shanghai Bell. A Nokia spokesperson confirmed the Hangzhou plan in a statement, noting that the China business has been declining over the past several years and that the company is adjusting its operations to reflect this reality.

The company plans to achieve cost savings of approximately 200 million euros by integrating its China operations into its global structure. The number of employees in Greater China fell from an average of 13,700 in 2020 to 7,200 in 2025. Over the same period, Nokia's total workforce declined from about 92,000 to 78,000, down from a peak of 103,000 in 2018.

Swedish rival Ericsson faces a similar trend, with its China revenue dropping from 18.7 billion Swedish kronor in 2020 to about 8.2 billion Swedish kronor in 2025. Nokia's research and development spending reached nearly 4.9 billion euros in 2025, up from 4.5 billion euros the previous year. Additionally, in late July, Nokia announced plans for further job cuts in Europe, with restructuring costs of up to 200 million euros.