Nokia to lay of 10,000 employees worldwide

Nokia, the Finnish mobile phone company, is set to lay off 10,000 workers worldwide until the end of 2013, said the company sources on Thursday.

Nokia, with a worldwide workforce of 130,000 employees, has announced a broad restructuring plan that seeks to recover the lost profitability in recent months by a sharp cut operating costs to rebuild profits.

This plan includes, among other measures, worldwide staff reductions that will affect 7.7% of the total workforce and the closure of the Salo plant, the only plant that Nokia held in Finland.

"The planned cuts are difficult to believe but we had to take the measures to ensure long term competitiveness for the firm," the company’s CEO, Stephen Elop, was quoted as saying.

"We do not make plans that may affect our employees and as a company we will work tirelessly to ensure that the affected employees receive support, options and advice from our side which is necessary to find new opportunities,"
he went on.

Nokia’s goal is to cut annual operating costs of Devices and Services division to 3,000 million Euros by the end of 2013, compared to 5,350 million Euros in 2010. This will dispose of those assets that are not
considered on priority, including their subsidiary luxury mobile phones Vertu, whose sale to a Nordic venture capital firm was officially announced on Thursday.

Also, Nokia announced an extensive remodelling of their board of directors that includes executive’s dismissal as the heads of marketing (Jerri Devard), basic mobile division (Mary McDowell) and markets (Niklas Savander).

In the same statement, the Finnish technology company has revised forecasts for the second quarter. It has been observed that they have sold less
smartphone than expected, including new models in the range Lumia.

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Posted by Farasat Ali on Jun 15 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry