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The move comes as part of long-term restructuring underway since 2023
According to reports, Nokia is set to close its site in Munich by 2030, a move that will see 700 jobs cut or relocated.
Around 300 of these jobs are to be cut in 2026, with the remainder taking place by the end of 2030.
The closure is part of Nokia’s major restructuring announced back in 2023, aimed at streamlining the company and reducing costs. Part of this plan is a reduction of the company’s workforce by between 9,000 and 14,000 jobs cut by the end of 2026. This, the company said, will help it cut costs by between €800 million and €1.2 billion. Around €400 million of these savings were planned to be reached in 2024, and a further €300 million in 2025.
Nokia currently employs 2,500 people across Germany, including its additional sites in Düsseldorf, Stuttgart, Ulm, and Nuremberg. All these sites, Nokia says, will be affected by the nationwide headcount reduction in 2026, but will not be closed.
“This will strengthen our capacity for long-term growth and customer loyalty, while ensuring that our teams have the framework conditions necessary for their success,” said the company in a statement.
The trade union IG Metall, however, has described the decision to close the Munich site as ‘disastrous’.
“Especially in times of geopolitical challenges, it is a fatal signal when a key company scales back its presence in Germany,” said Daniele Frijia, managing director of IG Metall Munich and member of Nokia’s German supervisory board, speaking to heise online.
“Instead of cutting jobs, Nokia should invest in the future,” she added.
But it is not all doom and gloom for Munich’s relationship with tech giants.
Earlier this month, Deutsche Telekom announced a deal with Nvidia to build a new ‘AI factory’ in Munich, seeking to meet not only Europe’s demand for AI computing but also its desire for data sovereignty. Similarly, AI company Anthropic has shown interest in the city, announcing plans to open a new office in Munich, alongside another in Paris.
It would appear that Munich’s position as a European tech hub is not at risk just yet.
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