Nokia to shed 10,000 jobs
Thursday 14 June 2012
Nokia has announced it will lay off 10,000 workers worldwide by the end of 2013 in a further drive to save costs.
The Finnish mobile phone maker said it aims to return the company to profitable growth by sharpening strategy and improving its operating model.
Although it plans "to significantly reduce its operating expenses," Nokia said it remains focused on its smartphones and feature phones and intends to expand location-based services.
The cuts mean that Nokia will close some research and development projects, including in Ulm, Germany, and Burnaby, Canada.
The company said it will also close the manufacturing plant in Salo, Finland, but will keep its research and development operations there.
Nokia is fighting fierce competition from Apple's iPhone and other makers using Google's popular Android software, including Samsung and HTC of Taiwan. It is also being squeezed at the low end of the market by Asian manufacturers making cheaper phones, such as China's ZTE.
Nokia said that "competitive industry dynamics" in the second quarter would hit its smartphone sector to a "somewhat greater extent than previously expected" and that no improvement was expected in the third quarter.
"Nokia is significantly increasing its cost reduction target for devices and services in support of the streamlined strategy announced today," said spokesman Timo Ihamuotila.
"With these planned actions, we believe our devices (and) services business has a clear path to profitability. Nokia intends to maintain its strong financial position while proceeding aggressively with actions aimed at creating shareholder value."
Last year, Nokia announced more than 10,000 lay-offs, aimed at cutting operating expenses.
Oscar Pistorius trial: Defence's own witness contradicts athlete's version of events
Oscar Pistorius trial: The case against Oscar Pistorius – and why the prosecution claims his story doesn't add up
South Korea ferry: Captain Lee Joon-seok could face criminal investigation as over 280 remain missing
Peaches Geldof dead: Private funeral for the family and friends of the socialite will take place next week
Shropshire criminals ‘using unmanned drones and infrared cameras to find illegal cannabis farms’ – and then steal from the growers
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
- 1 Poveglia: 'World's most haunted island' up for sale...is anyone brave enough to buy it?
- 2 The Hobbit: There and Back Again set for possible title change
- 3 Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'
- 4 24 people applied for the 'world's toughest job', here are their interviews
- 5 Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...