Nokia to layoff 7,000 employees by the end of 2012
Nokia Corp. announced that it will slash 7,000 jobs worldwide Wednesday, by both layoffs and outsourcing, as it aims to cut costs and converge with its top competitors in the smartphone industry. Many of the 4,000 cutbacks, due by the end of 2012, will be from Denmark, Finland and Britain, Nokia said.
The company also intends to assign workers from China, Finland, India, Britain and the United States to Accenture PLC as it outsources Symbian platform affairs to the global management-consulting firm, in a dominant shift of strategy.
Nokia coordinated company briefings for thousands of personnel in various cities in Finland, where it has 13,000 workers but obliquely supplies work for more than 20,00 people.
The announcements arrived as the world’s top cellphone maker attempts to cut operating expenses by $1.5 billion (1 billion euros) by 2013 in the middle of intense competition that has seen its market share plunge and profits collapse.
Enterprises had been anxiously awaiting signals about company policy from Stephen Elop, the new CEO, since he took over in September. Even more they anticipated word on strategy adjustment since the the February 11 statement that Nokia and Microsoft Corp. were working together to entice rivals such as Research in Motion, Apple Inc. and Google Inc.