Finnish mobile giant Nokia has announced that it is trimming down its operations by cutting over 600 positions, mainly in marketing and sales departments. The Nokia Research Center (NRC), the business unit that explores and develops technologies that will be available in the marketplace in five to ten years, will also focus on fewer research areas from now on.
In addition to the lay-offs, Nokia is closing an entire company site (Turku) by the end of January 2009, but hopes to relocate all of its 220 employees to Nokia’s site at Salo or in the capital area in Finland. The changes in the Markets unit, Nokia Research Center and in other Nokia functions will come into effect on January 1, 2009.
In another release, Nokia touts the introduction of a range of low-priced mobile devices and new services catered specifically to people in emerging markets (e.g. India). In total, seven new handsets were announced, and the first services Nokia will offer in emerging markets will focus on email (Mail on Ovi), agriculture and education (Nokia Life Tools).
Like many businesses, Nokia is feeling the nasty sting of the economic downturn. Its recently announced Q3 earnings weren’t spectacular either (down over 28 percent on a year earlier), so these lay-offs don’t exactly come unexpectedly. It’s easy enough to find the irony when you look at the two news releases side by side, but I think Nokia is actually making the right strategic move by shifting its focus to custom internet services for countries where there is much room for growth and very specific needs.
I doubt the employees that were fired will feel the same way, though.
don’t care.
Enough to comment, it seems.
Nokia developed good market strategies. That could be seen as Nokia production from Germany to Romania has changed.
Hope they all find new jobs soon
http://www.zenbylunch.com
Nokia opened quite recently a new factory in Romania (eastern Europe) where it produces mobile phones for Asia and Africa…
Very bad. Job cuts have become common these days. Don’t know whether the worst is over or it is yet to come.
Hopefully this will make Nokia more focused. The company is currently a mess, with dozens of dead-end technologies. It seems no one has a clear vision for the company and where it should go. Unless they can get their act together they will die a slow death with their low-end market eroded away by Asian manufacturers and the high-end market controlled by Apple and various Android licensees. They have some great technology but the leadership is abysmal. Sad.
Symbian is dying! Nokia lost a lot of marketshare with emergence of BB and the iPhone. This is crazy news!
Btw
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Nokia, “Dis” connecting People
Not only the crisis in economy, but also the success of Iphone has badly affected the sales of Nokia…
You people at the NOKIA are doing a wonderful job, meeting all the expectations and winning all the challenges. BRAVO 2 all of you.
I thought Information Week is one of the most reliable sources of information. Thanks