Nokia to cut 10 000 more jobs
Struggling Finnish mobile phone manufacturer Nokia will slash an additional 10 000 jobs, on top of 14 000 job losses in 2011, as it struggles to make headway against Samsung and Apple in the smartphone market.
The company, headed by Canadian national Stephen Elop, says it aims to achieve a further reduction in costs of US$2bn, on top of the earlier $1bn it said it needed to cut by the end of next year.
Nokia says the latest round of job cuts and cost cutting are aimed at “sharpening its strategy, improving its operating model and returning the company to profitable growth”.
“We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia,” says Elop in a statement.
“We intend to pursue an even more focused effort on [Windows Phone-powered] Lumia [devices], continued innovation around our feature phones, while placing increased emphasis on our location-based services. However, we must reshape our operating model and ensure that we create a structure that can support our competitive ambitions.”
Nokia says it will reduce research and development projects, resulting in the closure of its facilities in Ulm, Germany, and Burnaby, Canada. It will also consolidate manufacturing operations, resulting in the closure of a manufacturing facility in Salo, Finland.
The company says it wants to complete the latest round of job cuts by the end of 2013.
“These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,” says Elop.
At the same time, the company has concluded plans to sell its luxury phone unit, Vertu, to EQT VI, a European private equity firm. It has also shaken up its top management team, with Juha Putkiranta named as executive vice-president of operations; Timo Toikkanen as executive vice-president of mobile phones; Chris Weber as executive vice-president of sales and marketing; Tuula Rytila as senior vice-president of marketing and chief marketing officer; and Susan Sheehan as senior vice-president of communications. — (c) 2012 NewsCentral Media