Nokia has confirmed plans to close its research and development facility in Hangzhou, a move that will result in the loss of about 1,600 jobs. The company stated that this decision reflects the ongoing decline of its business operations in China and a strategic effort to align its local activities with its global structure.
The closure follows a significant shift in Nokia's corporate structure in late 2025, when it assumed full control of Nokia Shanghai Bell, a joint venture previously operated with state-backed China Huaxin.
Executives previously disclosed that Nokia was excluded from Chinese government tenders for national security reasons. This exclusion, along with a general sales slump for Nordic vendors in the region, has driven a sustained reduction in headcount. According to the company's most recent annual report, the elimination of these roles will reduce Nokia's Greater China workforce to approximately 5,600 employees.
This figure includes staff located in Hong Kong and Taiwan.
The reduction in China-based staff is part of a long-term trend. A decade ago, following the acquisition of Alcatel-Lucent, Nokia employed nearly 19,000 people in China. By 2023, that number had fallen to 10,400, and it decreased further to 7,200 last year.
The company has also exited manufacturing in the region, having disposed of a radiofrequency systems factory in Suzhou. Nokia currently owns no manufacturing sites in China.
This contraction mirrors the broader market dynamics affecting European telecommunications equipment makers. Both Nokia and its rival Ericsson have significantly reduced their presence in China since 2021, with thousands of jobs cut across both firms. Conversely, Chinese vendors such as Huawei and ZTE have seen a relative slowdown in their European markets.
