Nokia's China Shock: Operations Shutting Down, Thousands Jobless

Nokia is winding down virtually all of its mainland China operations, planning to close facilities and sharply reduce local headcount by the end of 2026. The Finnish telecommunications equipment maker said the exit is driven by sustained competitive pressure from domestic rivals and geopolitical conditions that have made further investment in the region economically unjustifiable. Scope and timeline of the withdrawal The largest single impact falls on the Hangzhou research center, where roughly 1,600 engineers have been employed. Layoffs there are scheduled in three phases between September and December 2026. Key technological assets and laboratory equipment have already been transferred to Nokia's European divisions. In parallel, office structures and production sites in Beijing, Shanghai, Chengdu, and Qingdao are being liquidated. Affected employees will receive severance under an "N+3" formula that accounts for tenure plus three additional months of salary. A portion of the specialists have been offered transfers to the company's headquarters in Finland.