Nokia will cut up to 14,000 jobs as the Finnish vendor aims to reduce costs.

The company said that weaker demand for next-generation 5G equipment lowered third-quarter sales by a fifth.

In particular, Nokia blamed its performance on sales of 5G equipment in the North American market, despite the pace of 5G deployment in India.

The vendor previously announced in 2021 that it was planning to cut between 5,000 and 10,000 staff over the next year two years.

Nokia said it is aiming to save between €800 million ($842 million) and €1.2 billion by 2026.

That's its deadline to deliver a long-term comparable operating margin plan of at least 14 percent.

"Our third quarter performance demonstrated resilience in our operating margin despite the impact of the weaker environment on our net sales. In the last three years, we have invested heavily to strengthen our technology leadership across the business giving us a firm foundation to weather this period of market weakness," said Nokia president and CEO Pekka Lundmark.

"We continue to believe in the mid to long-term attractiveness of our markets. Cloud Computing and AI revolutions will not materialize without significant investments in networks that have vastly improved capabilities. However, given the uncertain timing of the market recovery, we are now taking decisive action on three levels: strategic, operational, and cost. I believe these actions will make us stronger and deliver significant value for our shareholders."

At present, Nokia employs 86,000 people globally. The company expects this figure to reduce to between 72,000 and 77,000 employees.

Earlier this year, Nokia's rival Ericsson also revealed plans to cut 8,500 jobs globally. The vendor said that the plan was part of cost-cutting measures.

Ericsson has also had a tough week, posting a year-on-year net loss of SEK30.5 billion ($2.8bn) due to a SEK32 billion ($2.9bn) charge related to the acquisition of cloud company Vonage in 2022.