Feeds

Nokia axes another 3,500 jobs

Glum Finns spurned by Redmond

Boost IT visibility and business value

Nokia is cutting a further 3,500 jobs in Europe as part of its restructuring plan to save the company €1bn in operating expenses by 2013.

The Finnish phone company axed 7,000 jobs in April, with 4,000 people going from Britain, Denmark and Finland and 3,000 Symbian jobs moving from the firm to Accenture.

Today, Nokia announced that 2,200 people would be made redundant after it closes a factory in Cluj in Romania, while a further 1,300 jobs will be lost in its location and commerce business in Bonn in Germany and Malvern in the US.

"We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger," Stephen Elop, president and CEO, said in a canned statement. "We must take painful, yet necessary, steps to align our workforce and operations with our path forward."

Nokia also said it was "starting consultations" with employees in sales, marketing and corporate functions.

When it announced the restructuring plan in April this year, the company said that job losses would be seen in phases until the end of 2012.

Nokia is hoping that a concentration of its resources on its partnership with Microsoft will help it regain some ground in the smartphone market, but so far the road to recovery appears to be rocky.

"While Nokia has put its eggs in the Microsoft basket, its Redmond-based partner has not returned the favour. Microsoft has not slowed down to wait for Nokia, as just two weeks ago, USA mobile carrier AT&T announced its launch partners – HTC and Samsung – for the Mango release of Windows Phone 7. Nokia was noticeably absent from that list," said Frost & Sullivan ICT analyst Craig Cartier.

"This development brings into question whether the former leading phone manufacturer can, as promised, bring Windows Phone devices to market before the critical holiday sales period of 2011. If not, this announcement might not be the last of the job cuts we hear,” he added. ®

The essential guide to IT transformation

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
What's the nature of your emergency, Vodafone?
Oh, you've dialled the wrong number for ad fibs, rules ASA
EE network whacked by 'PDP authentication failure' blunder
Carrier is 'aware' of cockup, working on a fix NOW
ROAD TRIP! An FCC road trip – Leahy demands net neutrality debate across US
You crashed watchdog's site, now time to crash its ears
Google's so smart it's discovered SHARKS HAVE TEETH
Congratulations, world media, for rediscovering submarine cable armour
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?