Nokia plans to close almost all of its sites in mainland China by the end of 2026 and cut most of its workforce in the country, according to people familiar with the matter cited by the South China Morning Post. The move would represent a significant retreat from a market where the Finnish telecommunications equipment maker has operated for more than four decades and which was once its largest single-country market globally.
The restructuring is expected to take place in stages, with employees in both Nokia’s mobile networks and network infrastructure businesses in mainland China facing layoffs. Nokia had about 7,200 employees across mainland China, Hong Kong and Taiwan at the end of 2025, although the company has not disclosed how many of those workers will be affected by the latest changes.
Nokia Plans Broad Retreat From Mainland China
The planned restructuring would significantly reduce Nokia’s physical presence in mainland China. According to sources cited by the SCMP, Nokia intends to close sites in stages by the end of this year, while most workforce reductions are also expected to be completed by then.
Nokia’s mainland operations include locations in major Chinese cities such as Beijing, Shanghai, Hangzhou, Chengdu and Qingdao. The company has not publicly confirmed the closure schedule or provided a detailed breakdown of the sites that will be affected.
Nokia China Operations At A Glance
| Metric | Reported Figure / Status |
|---|---|
| Nokia presence in China | More than 40 years |
| Employees across China, Hong Kong and Taiwan at end-2025 | ~7,200 |
| Planned mainland China site closures | Almost all sites |
| Expected completion | By end of 2026 |
| Workforce reduction | Most mainland China employees |
| Businesses affected | Mobile Networks and Network Infrastructure |
| Known mainland locations | Beijing, Shanghai, Hangzhou, Chengdu, Qingdao |
| Exact number of layoffs | Not disclosed |
The 7,200 employee figure covers mainland China, Hong Kong and Taiwan rather than mainland China alone. Consequently, it should not be interpreted as the number of workers who will lose their jobs in the latest restructuring.
Nokia Has Confirmed A China Business Realignment
Nokia has acknowledged that its Chinese business has been declining and said it is adjusting its local operations to align them with its global business structure.
However, the company has not confirmed the precise number of employees to be laid off or the complete list of sites that could close. Reuters also reported that Nokia has provided limited details about the scale and timeline of the changes.
This distinction is important because the reported closures come from sources familiar with the situation, while Nokia’s public comments confirm a broader operational adjustment rather than every detail reported about the restructuring.
What Nokia Has Confirmed Vs What Sources Say
| Issue | Current Information |
|---|---|
| China operations declining | Nokia has acknowledged this |
| Operations being realigned | Confirmed by Nokia |
| Most mainland sites closing | Reported by sources |
| Most mainland workforce being cut | Reported by sources |
| Exact number of job cuts | Not disclosed |
| Exact number of sites closing | Not disclosed |
| Completion target | End of 2026, according to sources |
Nokia’s China Workforce Faces Major Restructuring
The workforce impact could be substantial because Nokia operates across multiple business units in China.
Sources told the SCMP that both its mobile networks and network infrastructure businesses are expected to undergo layoffs in batches. Most of the reductions are expected to be completed before the end of 2026.
Nokia’s annual report showed approximately 7,200 employees across mainland China, Hong Kong and Taiwan at the end of 2025. Because the company has not broken out the mainland-only figure in the cited reporting, the eventual number of employees affected cannot yet be calculated reliably.
Workforce Impact
NOKIA'S REGIONAL WORKFORCE
China + Hong Kong + Taiwan
≈ 7,200 employees
│
├── Mainland China
│ ↓
│ Most workforce
│ reportedly affected
│
└── Hong Kong + Taiwan
Not covered by the
reported mainland exit
The key point is that Nokia’s reported 7,200-person regional workforce should be viewed as the broader employee base rather than a confirmed number of potential layoffs.
Why Nokia Is Losing Ground In China
The retreat fits a wider realignment of technology supply chains away from China — see Google moving all Pixel production out of China by 2027 and China’s own chip industry growing 22% to a record $245 billion.
The restructuring comes after years of declining business in China and increasing competition from domestic telecommunications equipment companies.
Chinese companies such as Huawei and ZTE have become major suppliers in the country’s telecom infrastructure market. The competitive environment has made it increasingly difficult for foreign equipment vendors to maintain their previous position.
The SCMP described China’s domestic competition as a major factor behind Nokia’s retreat, while Nokia itself cited the steady decline of its Chinese operations when explaining its decision to realign the business.
Competitive Pressure In China’s Telecom Market
| Factor | Impact On Nokia |
|---|---|
| Huawei’s domestic strength | Increased competitive pressure |
| ZTE’s market position | Greater competition in network equipment |
| Declining Nokia China business | Lower justification for maintaining large operations |
| Local market dynamics | Reduced opportunity for foreign suppliers |
| Global business alignment | Greater pressure to streamline regional operations |
The retreat is therefore not simply a site-closure exercise. It reflects a broader shift in Nokia’s assessment of the size and strategic importance of its China operations.
Nokia’s China Retreat Comes After Four Decades
Nokia has operated in China for more than 40 years. The country was once Nokia’s largest single-country market globally, making the scale of the current retreat particularly significant.
The company’s relationship with China has evolved considerably during that period. Nokia’s business has shifted from its historic mobile-phone operations toward telecommunications infrastructure, including mobile networks and network infrastructure.
That transformation means the current restructuring is primarily about Nokia’s telecommunications equipment business rather than the company’s former consumer handset operations.
Nokia China Presence: Key Milestones
40+ YEARS
Nokia operates in China
↓
China becomes a major Nokia market
↓
Nokia shifts focus toward telecom infrastructure
↓
Domestic Chinese equipment makers gain strength
↓
China business steadily declines
↓
2026
Major workforce cuts + site closures planned
Hangzhou Facility Already Faced A Major Closure
The latest restructuring follows a significant move involving Nokia’s Hangzhou operations.
A report from Light Reading said Nokia was closing an R&D facility in Hangzhou, a move expected to affect about 1,600 jobs. The development came as Nokia continued to restructure its China business and respond to market-share pressure.
The Hangzhou development provides an indication of how significant individual site closures can be in terms of workforce impact, although it should not be treated as a forecast for the total number of job cuts across mainland China.
| Location | Reported Development |
|---|---|
| Hangzhou | R&D facility closure reported |
| Hangzhou workforce impact | ~1,600 jobs reported by Light Reading |
| Beijing | Nokia site presence reported |
| Shanghai | Nokia site presence reported |
| Chengdu | Nokia site presence reported |
| Qingdao | Nokia site presence reported |
Nokia’s China Exit Reflects A Wider Telecom Shift
Nokia’s retreat comes at a time when China’s telecommunications equipment industry is increasingly dominated by domestic suppliers.
For Nokia, maintaining offices, R&D facilities and other infrastructure makes less economic sense if the underlying addressable business continues to shrink. Closing sites and reducing staffing can allow the company to concentrate resources on markets where it sees greater opportunities.
At the same time, the move illustrates the difficulties faced by multinational technology companies operating in strategically important Chinese technology markets.
The Bigger Picture
Nokia’s planned mainland China restructuring is one of the company’s most significant retreats from the country in decades. The company is moving from a substantial local presence toward a much smaller footprint as its Chinese business declines and domestic competitors strengthen.
The development also highlights the changing competitive landscape of global telecom infrastructure. Companies such as Huawei and ZTE have strengthened their positions in China, while foreign equipment makers face a combination of commercial, geopolitical and market-access pressures. For Nokia, the response is to reduce its local cost base and align its China operations more closely with its global strategy.
Looking Ahead
The next major milestones will be the implementation of Nokia’s reported site closures and workforce reductions through the remainder of 2026. The exact number of employees affected remains uncertain because Nokia has not disclosed a detailed breakdown, while the 7,200 figure reported for the end of 2025 covers mainland China, Hong Kong and Taiwan collectively.
For Nokia, the restructuring could reduce costs and simplify its presence in a market where its business has weakened, but it also marks a major retreat from a country that once represented a crucial part of its global operations. The longer-term impact will depend on how effectively Nokia reallocates resources to other markets and whether its reduced China footprint allows it to remain competitive in the global telecommunications equipment industry.
Frequently Asked Questions
What is Nokia closing in China?
Nokia plans to close almost all of its sites in mainland China by the end of 2026 and cut most of its workforce in the country.
How long has Nokia operated in China?
Nokia’s China retreat comes after about four decades in the market.
Why is Nokia leaving China?
Nokia has lost ground to domestic telecom equipment rivals, and the company has confirmed a realignment of its China business.
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