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
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Content Writer - Global Financial Services

£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Web Developer - PHP

£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Field Sales Consultant - Financial Services - OTE £65,000

£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Loan Underwriter

£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

Orthorexia nervosa

How becoming obsessed with healthy eating can lead to malnutrition
Lady Chatterley is not obscene, says TV director

Lady Chatterley’s Lover

Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
Farmers in tropical forests are training ants to kill off bigger pests

Set a pest to catch a pest

Farmers in tropical forests are training ants to kill off bigger pests
Mexico: A culture that celebrates darkness as an essential part of life

The dark side of Mexico

A culture that celebrates darkness as an essential part of life
Being sexually assaulted was not your fault, Chrissie Hynde. Don't tell other victims it was theirs

Being sexually assaulted was not your fault, Chrissie Hynde

Please don't tell other victims it was theirs
A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border