Key points
- Nokia confirmed it is shrinking its China operations. The South China Morning Post reported the company will close almost all of its mainland sites and cut most of its local staff by the end of 2026.
- The clearest step so far is the closure of Nokia's research center in Hangzhou, which employs about 1,600 people. Sites in Beijing, Shanghai, Chengdu and Qingdao are under review.
- Nokia's Greater China revenue fell from about $2.6 billion in 2018 to $1.06 billion in 2025, and its share of the China market is now below 3%.
- Nokia raised its 2026 restructuring charge to about $930 million, with about $405 million tied to the China overhaul.
For more than 40 years, Nokia (NOK) sold telecom gear in China. Now it's walking away from most of it. The company confirmed this week that it's cutting its China operations. The South China Morning Post first reported the plan. Its sources say Nokia will shut almost all of its mainland sites by the end of 2026.
Nokia didn't dispute the direction. "Nokia's business in China has steadily declined over the last several years," the company said. It's "adjusting our operational footprint in China to address this reality."
The first hard step is in Hangzhou. Nokia is closing a research center there, and about 1,600 jobs go with it. Other sites, in Beijing, Shanghai, Chengdu and Qingdao, are under review.
The retreat caps years of decline. Nokia's China business today is less than half its 2018 size, and its share of the market has slipped below 3%.
| Figure | Then | Now |
|---|---|---|
| Greater China revenue | 2.2B euros ($2.6B), 2018 | 913M euros ($1.06B), 2025 |
| Greater China headcount | 13,700, 2020 | 7,200, end 2025 |
| 2026 restructuring charge | 250M euros ($290M) planned | 800M euros ($930M), 350M for China |
The reasons are commercial and political. Chinese carriers have steered their 5G spending to home vendors like Huawei and ZTE. Foreign suppliers got squeezed out. Nokia's rival Ericsson (ERIC) has pulled back the same way.
None of this comes cheap. Nokia expects the overhaul to run into the hundreds of millions and to save about 200 million euros ($230 million) a year once it's done.
The rest of Nokia's business is steadier. It reported a loss last quarter, but its AI data-center sales doubled. And its own insiders have kept buying the stock this month.
Nokia's US-listed shares fell on Tuesday. They traded near $10.40 by early afternoon, down more than 3% from Monday's close of $10.78. The closures will come in stages through year end, according to the South China Morning Post.
