Finnish telecommunications equipment maker Nokia, on Thursday, said it will begin a two-year 600 million euro ($653 million) share buyback this quarter.
This development followed Nokia’s report that its profit plunged in 2023
It warned that it expects another tough economic environment in the first half of this year after its net profit sank in 2023.
Nokia and its Swedish rival Ericsson have launched cost-cutting programmes as their customers have reduced spending amid a slowing global economy.
The Finnish firm reported a profit of 679 million euros ($739 million) last year, down 84 percent from 2022.
“In 2023 we saw a meaningful shift in customer behaviour impacting our industry driven by the macro-economic environment and high interest rates along with customer inventory digestion,” Nokia chief executive Pekka Lundmark said in an earnings statement.
“We expect the challenging environment of 2023 to continue during the first half of 2024, particularly in the first quarter,” he added.
