Nokia is reportedly cutting 1,600 jobs in China.

According to LightReading, the firm’s research and development site in Hangzhou will be shuttered. The report also suggests other Nokia sites in cities like Beijing, Qingdao, and Shanghai are also facing the axe amid the vendor’s latest restructuring efforts.

A statement provided to the publication from Nokia confirmed the move, saying it was taking steps to “better align its operations in China with Nokia's global mode of operation.”

“Nokia's business in China has steadily declined over the last several years. Thus, we are adjusting our operational footprint in China to address this reality,” a spokesperson added.

The turn of the year saw Nokia take back control of its Chinese joint venture mere months after CEO Justin Hotard bemoaned the company’s China market share of just three percent – using it as a chance to hit back at Chinese rivals operating in Europe.

The job cuts mark what has been a long-anticipated move for the vendor’s Chinese operations. Upon closing its deal for Nokia Shanghai Bell, a company representative told SDxCentral the move would allow Nokia to “simplify its ownership structure in China.” As far back as a 2024 annual report, Nokia made similar pledges and that it remained “committed to continue serving the local market.”

Nokia is no stranger to restructuring and layoffs, with the company currently reaping the benefits of its latest strategic pivot toward the data center and AI infrastructure market. Net sales in AI and cloud grew by 105 percent per its most recent earnings, with Hotard and wider leadership fully focused on maximizing opportunities in what they’ve coined the “AI supercycle.”

The vendor had previously moved on cutting some 14,000 jobs by 2026 as a “resetting” of its “cost base to protect profitability.” Around 120 roles were cut in Finland earlier this year in its homeland of Finland as part of that wider plan.