Nokia shares down 9.6, lowest since April 2021
Ericsson shares down 8.7
Nokia Q2 sales 5.7 billion euros vs expected 6 billion
Ericsson Q2 operating profit down 62

LONDON, July 14 Reuters Finland39;s Nokia cut its annual outlook on Friday and Swedish rival Ericsson reported plunging quarterly profits, as a slowdown in consumer spending hit sales of telecommunications gear.

Nokia39;s shares were down 9.6 in morning trade to their lowest since April 2021, while Ericsson shares were down 8.7.

Fears of an impending recession have forced telecoms businesses to cut budgets and hold off on device upgrades and digitalisation plans, slowing plans at firms such as Nokia and Ericsson to expand 5G networks and broadband connections.

Consumers holding back on spending has also forced a number of major telecoms firms to cut costs and lay off employees. In May, Vodafone announced plans to cut 11,000 jobs globally, while BT said it would reduce headcount by 55,000 by 2030.

The companies thought that demand would pick up in the second half of the year, particularly in North America, but it now looks increasingly clear that it will be pushed to 2024, Kimmo Stenvall, analyst at OP Markets, told Reuters.

In February, Ericsson announced plans to cut 8,500 employees globally in order to reduce costs. On Friday the firm said the impact of such costcutting activity would be increasingly visible in coming quarters.

Nokia reported secondquarter sales of 5.7 billion euros 6.4 billion,…