Mobile phone manufacturer Nokia will lay off almost 10 000 workers globally as part of a series of planned actions designed to streamline the company and signficantly reduce operating expenses.
“As a result of the planned changes announced, Nokia plans to reduce up to 10,000 positions globally by the end of 2013. Nokia is beginning the process of engaging with employee representatives in accordance with country-specific legal requirements,” it said in a statement.
“We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia,” said Stephen Elop, Nokia president and CEO.
He also added that the company will be focusing more on the Lumia range, as the Lumia 900 is due to be launched in South Africa next week.
“We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services. However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions.”
As part of the cost-saving strategy, Nokia will also close its facilities in Ulm, Germany and Burnaby, Canada, while streamlining IT, corporate and support functions. The manufacturing facility in Salo, Finland will also be shut down, but Research and Development efforts in Salo will continue.
“These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,” added Elop. “We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities.”
Nokia also announced that it has appointed Juha Putkiranta as executive vice president of Operations; Timo Toikkanen as executive vice president of Mobile Phones; Chris Weber as executive vice president of Sales and Marketing; Tuula Rytila as senior vice president of Marketing and Chief Marketing Officer; and Susan Sheehan as senior vice president of Communications.
Jerri DeVard steps down as chief marketing officer; Mary McDowell steps down as executive vice president of Mobile Phones; and Niklas Savander steps down as executive vice president of Markets.
There has been no confirmation as to how the layoffs will affect the African market.
Charlie Fripp – Consumer Tech editor
