Legal News

Nokia to Cut 10,000 Jobs
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

By the end of 2013, Nokia Corp. is planning to cut 10,000 jobs globally and close multiple plants, according to the company. In Ulm, Germany and in Burnaby, Canada, the company will shut down research projects and close a manufacturing plant in Finland.

‘‘These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,’’ Nokia CEO Stephen Elop said. ‘‘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.’’

  
What
Where


The company provided an updated outlook on things, saying that ‘‘competitive industry dynamics’’ within the second quarter would hit its smartphone market ‘‘somewhat greater extent than previously expected.’’ The company also said that it was not expecting any improvement in the third quarter. Nokia also noted that it plans to “significantly reduce its operating expenses’’ but will also focus on smartphones. Private equity group EQT VI is acquiring Verty, the global luxury phone from Nokia, which will hold a 10 percent minority. Mary McDowell, head of mobile phones unit, and Niklas Savander, head of the markets sector, will also be leaving Nokia.

Nokia announced one of its worst losses in a quarter ever back in April when tough competition was blamed for a €929 million net loss. The company’s sales plunged and its smartphone market really took a large hit. In 2011, Nokia still stood as one of the top cellphone makers in the world, boasting annual unit sales of 419 million. In the last quarter of 2011, the company had a net loss of €1.07 billion. This was a major switch from the 745 million profit in 2010 the company experienced. Nokia has fallen to third place in the smartphone market in the first quarter of 2012 behind Samsung and Apple. Samsung is in first place with 44.5 million units, Apple is in second place with 35 million units and Nokia is in third with 12 million units.

‘‘Nokia is significantly increasing its cost reduction target for devices and services in support of the streamlined strategy announced today,’’ said CFO Timo Ihamuotila. ‘‘With these planned actions, we believe our devices (and) services business has a clear path to profitability. Nokia intends to maintain its strong financial position while proceeding aggressively with actions aimed at creating shareholder value.’’

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




In 2011, over 10,000 layoffs were announced by Nokia which were aimed at cutting the expense of the company’s operations by at least €1 billion ($1.31 billion) by the year 2013.





 

RELEVANT JOBS

Associate Attorney

USA-CO-Denver

DTC based firm is looking to add an additional associate to join our growing practice. The associate...

Apply now

Associate Attorney

USA-KS-Newton

Gillmore & Wilson: Attorneys at Law Job-type: Full-time Title: Associate Attorney Gillmore ...

Apply now

Family law attorney Westlake Village

USA-CA-Westlake Village

ZFLG is a boutique family law firm serving LA and Ventura Counties. We want to hire an experien...

Apply now

Estate Administration / Probate Paralegal

USA-PA-Philadelphia

I am looking for a part-time paralegal or legal assistant who is experienced, adept and proficient w...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Senior Wealth Management Group Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks Senior Wealth Management Group Associate Attorney with 9 years ...

Apply Now

Bankruptcy Associate Attorney

USA-CA-Los Angeles

Los Angeles office of a BCG Attorney Search top ranked law firm seeks Bankruptcy Associate Attorney ...

Apply Now

Tax Attorney

USA-FL-Miami

Miami office of our client seeks Tax Attorney with 2 years of experience. The candidate should be li...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top