Struggling Nokia downsizes in move to London

Paddington to be the platform for a fresh attempt to revive the fortune's of the Finnish mobile firm

Mobile phone giant Nokia is to move its head office to London as part of the turnaround of the struggling Finnish firm.

Nine months ago its chief executive told the phonemaker's staff that they were "standing on a burning platform" and would have to jump into the "icy waters" below. The company is making 4,000 job cuts globally and as part of the restructuring it will close its large head office in Farnborough and relocate to to an office in Paddington in central London. Staff were told of the latest restructuring decisions in London last week.

But it has emerged that Nokia is close to selecting a 60,000 sq ft office near Paddington station. The development at Kingdom Street is already home to mobile phone network operators Vodafone and Orange as well as retailers Marks & Spencer and Kingfisher.

Nokia is in the middle of a turnaround and following the job cuts it launched last week a new phone – the Lumia 800. The phone has been well received but Nokia has a long way to go. Before the launch of the iPhone in 2007, Nokia was the main provider of mobile phones in Europe. It remains the world's biggest mobile phone manufacturer but its global share of sales last year fell below 30 per cent for the first time. It has to compete with Google's Android offerings alongside Apple's iPhone.

Nokia teamed up with Microsoft in an attempt to keep up in the fast-paced tech telecoms world and the Lumia 800 is the first product from the tie up. It has also announced it will launch a tablet rival to Apple's iPad that runs on Microsoft's Windows platform in the summer of 2012.

Nokia's design team is already in a small office in Soho. But Nokia hopes the move to Paddington will boost its credentials in the tech telecoms world. The space is more expensive than offices outside London, but the smaller space – 60,000 sq ft to house up to 400 people – is less than a quarter of the size of its current office in Southwood, Farnborough. Nokia announced in April 700 of its 2,400 British staff would lose their jobs.

It had originally looked at alternative offices in Woking, Weybridge and Stockley Park near Heathrow, but it decided central London would improve the calibre of people it could attract to the firm.

But it has snubbed Tech City in East London – the area promoted by the Government for technology companies to move to – an area that stretches from Silicon Roundabout at Old Street eastwards to Stratford.

Nokia is not the first business to turn down the East London area. Telefónica, Europe's largest telecoms company, has preferred a central London location.

Despite the snubs by Telefónica and Nokia, Tech City has attracted Google, which has committed to opening a hub for start -ups.

Last week, Tech City organiser Kevin Eyres, a former European managing director of LinkedIn, published an appeal for at least 70 more mentors to add to the existing 30 to advise the infant tech enterprises in the area.

Nokia could not confirm details of the move but said that staff had only been told "a new location for UK employees will be found in London". A spokesman said: "Our choice is dictated by the design of the building, the surrounding area and facilities and good transport links."

CBRE advised Nokia.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Voices
There will be a chance to bid for a rare example of the SAS Diary, collated by a former member of the regiment in the aftermath of World War II but only published – in a limited run of just 5,000 – in 2011
charity appealTime is running out to secure your favourite lot as our auction closes at 2pm tomorrow
Arts and Entertainment
James May, Jeremy Clarkson and Richard Hammond in the Top Gear Patagonia Special
tv
News
Claudia Winkleman and co-host Tess Daly at the Strictly Come Dancing final
people
Arts and Entertainment
Caroline Flack became the tenth winner of Strictly Come Dancing
tvReview: 'Absolutely phenomenal' Xtra Factor presenter wins Strictly Come Dancing final
PROMOTED VIDEO
Arts and Entertainment
The Apprentice finalists Mark Wright and Bianca Miller
tvBut who should win The Apprentice?
News
news
Extras
indybest
News
Elton John and David Furnish will marry on 21 December 2014
peopleSinger posts pictures of nuptials throughout the day
Sport
Brendan Rodgers looks on from the touchline
SPORT
Life and Style
A still from the 1939 film version of Margaret Mitchell's 'Gone with the Wind'
life
Arts and Entertainment
J Jefferson Farjeon at home in 1953
booksBooksellers say readers are turning away from modern thrillers and back to golden age of crime writing
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Carlton Senior Appointments: Private Banking Manager - Intl Bank - Los Angeles

$200 - $350 per annum: Carlton Senior Appointments: Managing Producer – Office...

Carlton Senior Appointments: San Fran - Investment Advisor – Ind Advisory Firm

$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Day In a Page

The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there
The 12 ways of Christmas: Spare a thought for those who will be working to keep others safe during the festive season

The 12 ways of Christmas

We speak to a dozen people who will be working to keep others safe, happy and healthy over the holidays
Birdwatching men have a lot in common with their feathered friends, new study shows

The male exhibits strange behaviour

A new study shows that birdwatching men have a lot in common with their feathered friends...
Diaries of Evelyn Waugh, Virginia Woolf and Noël Coward reveal how they coped with the December blues

Famous diaries: Christmas week in history

Noël Coward parties into the night, Alan Clark bemoans the cost of servants, Evelyn Waugh ponders his drinking…
From noble to narky, the fall of the open letter

From noble to narky, the fall of the open letter

The great tradition of St Paul and Zola reached its nadir with a hungry worker's rant to Russell Brand, says DJ Taylor
A Christmas ghost story by Alison Moore: A prodigal daughter has a breakthrough

A Christmas ghost story by Alison Moore

The story was published earlier this month in 'Poor Souls' Light: Seven Curious Tales'
Marian Keyes: The author on her pre-approved Christmas, true love's parking implications and living in the moment

Marian Keyes

The author on her pre-approved Christmas, true love's parking implications and living in the moment
Bill Granger recipes: Our chef creates an Italian-inspired fish feast for Christmas Eve

Bill Granger's Christmas Eve fish feast

Bill's Italian friends introduced him to the Roman Catholic custom of a lavish fish supper on Christmas Eve. Here, he gives the tradition his own spin…
Liverpool vs Arsenal: Brendan Rodgers is fighting for his reputation

Rodgers fights for his reputation

Liverpool manager tries to stay on his feet despite waves of criticism
Amir Khan: 'The Taliban can threaten me but I must speak out... innocent kids, killed over nothing. It’s sick in the mind'

Amir Khan attacks the Taliban

'They can threaten me but I must speak out... innocent kids, killed over nothing. It’s sick in the mind'
Michael Calvin: Sepp Blatter is my man of the year in sport. Bring on 2015, quick

Michael Calvin's Last Word

Sepp Blatter is my man of the year in sport. Bring on 2015, quick