After reporting that the company’s earnings plummeted in the third quarter, Nokia, the Finnish telecom multinational, announced that it will cut as many as 14,000 workers as one element of a broader cost-reduction plan.

The announcement came on Thursday, after its quarterly report showed a 20% annual fall in sales between July and September, to €4.98 billion ($5.26 billion). The company’s profit over the quarter plummeted by 69% year over year to €133 million.

According to the company, the decision will help it to reduce its cost base as its operational efficiency increases, to help it “address the challenging market environment.”

The multinational, based out of Espoo is looking to reduce its cost base on a gross basis by between €800 million and €1.2 billion from 2023 to the end of 2026.

The plan would see the current workforce of 86,000 reduced to between 72,000 and 77,000.

Commenting on the decision Nokia chief executive Pekka Lundmark said, “The most difficult business decisions to make are the ones that impact our people. We have immensely talented employees at Nokia and we will support everyone that is affected by this process.”

Although the company did not specify from where it would make the job cuts, it indicated they would likely come from its operations in Europe, the UK, and the United States.

The company noted the exact scale of the layoffs would be dependent on the demand for the products produced by the company, adding that it “expects to act quickly” in an effort to save as much as €400 million next year and €300 million more in 2025.

Lundmark said, “We continue to believe in the mid-to-long-term market, but we are not going to sit and wait and pray that the market will recover anytime soon. We simply don’t know when it will recover.”

Shares of the company were down more than 6% Thursday.