Mobile World Live (MWL) brings you our top three picks of the week, as Nokia set out plans to cut as many as 14,000 jobs, UK operator EE claimed to move beyond telecoms with a new retail platform and the US further tightened exports of AI chips to China.
Nokia set for up to 14,000 job cuts in plan to slash costs
What happened? Nokia set a target of reducing costs by between €800 million and €1.2 billion by the end of 2026 and lose up to 16 per cent of its 86,000 headcount as it booked a 69 per cent drop in Q3 profit.
Why it matters: It has been a bad week for Europe’s vendor heavyweights as Ericsson also reported a bleak Q3, booking a quarterly loss and warned of uncertainty into 2024. Kester Mann, director of consumer and connectivity at CCS Insight, said the telecoms industry should be “flying high, buoyed by unrelenting demand for its services”.
“Instead, countless questions continue to be posed around operators’ relevance and long-term future.”
US to tighten export of AI chips to China
What happened? The US Commerce Department tightened export controls to further curb the sale of AI chips to China.
Why it matters: The new rules will severely impact China’s ability to compete in the increasingly-hyped AI segment. Previous restrictions meant Chinese companies were already unable to buy the latest kit, but these have been extended to slower A800 processors. Market leader Nvidia told MWL the curbs wouldn’t have a meaningful impact on its business given high demand for its products worldwide.
EE claims to move beyond telecoms with new retail platform
What happened? EE unveiled an online marketplace offering a suite of services including device sales and subscription management for all UK consumers.
Why it matters? Dubbed EE ID, the platform represents the operator’s push to scale its offering beyond connectivity, “Strategically, this puts the new EE in pole position compared to its traditional telco rivals. Others have their own challenges and will fall further adrift,” according to PP Foresight founder Paolo Pescatore.
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