Nokia Is Laying Off 10,000 People
Nokia has announced that they are laying off 10,000 positions globally by the end of 2013. Nokia is saying that this will enable them to “rescale the company.” Reductions will be happening in the Devices & Services division. Some facilities will be closed in Germany and Canada. Nokia will be streamlining their IT, corporate, and support functions. The manufacturing facility in Salo, Finland is also being closed.
Nokia is restructuring and they announced a number of changes in their senior leadership team. Nokia appointed Juha Putkiranta as the EVP of Operations, Timo Toikkanen as EVP of Mobile Phones, Chris Weber as EVP of Sales and Marketing, Tuula Rytila as SVP of Marketing and Chief Marketing Officer, and Susan Sheehan as SVP of Communications. Jerri DeVard, Mary McDowell, and Niklas Savander will be leaving Nokia’s leadership team on June 30, 2012.
Nokia lowered their outlook for the third quarter of the year. Nokia said that their Smart Devices business unit was negatively affected by “competitive industry dynamics.”
“These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,” stated Nokia CEO Stephen 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.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry