STOCKHOLM (Reuters) – Finnish telecommunications equipment group Nokia on Tuesday announced a cost-cutting plan of up to 10,000 job cuts over the next two years to cut costs and invest more in research.

After taking control of Nokia last August, CEO Pekka Lundmark announced in October a new strategy to transform the company to better compete with Nordic rival Ericsson.

As part of this transformation, Nokia will organize itself into four lines of business and its CEO will do “whatever it takes” to catch its 5G competitors, while focusing on capturing market share from its Chinese rival Huawei.

Pekka Lundmark is expected to present its long-term strategy, discuss action plans and set financial targets at an investor day scheduled for Thursday.

The group says it expects restructuring and associated costs of around 600 million to 700 million euros by 2023, he said in a statement.

“Decisions that can potentially impact our employees are never taken lightly,” Lundmark said in a statement. “My priority is to ensure that all those affected are supported throughout this process.”

Nokia predicts that the restructuring will reduce its cost base by around 600 million euros by the end of 2023. Half of the projected savings are expected to be achieved in 2021.

The plan aims to offset increased investment in research and development (R&D) and future capabilities, as well as costs associated with wage indexation, the group said.

Nokia warned in February that its turnover would decline in 2021 to between 20.6 billion and 21.8 billion euros, against 21.9 billion in 2020.

(Supantha Mukherjee, French version Diana Mandiá, edited by Blandine Hénault)