Nokia plans to cut 10,000 staff by end 2013, sells Vertu
The company said it will continue to invest in Lumia phones and location-based services
IDG News Service - Nokia said Thursday that it plans to cut up to 10,000 positions globally by the end of 2013, and is selling luxury phone maker Vertu in a bid to cut costs, even as it plans to boost investments in feature phones, and smartphones based on the Windows Phone operating system.
The company also announced changes in its senior management and plans to acquire imaging specialists as well as all technologies and intellectual property from Scalado in Lund, Sweden.
Nokia also plans to invest in its location-based platform as a way of differentiating its Lumia smartphones with services such as navigation and visual search applications such as the recently announced Nokia City Lens.
On the expenses front however, Nokia said it plans reductions in certain research and development (R&D) projects, resulting in the planned closure of its facilities in Ulm, Germany and Burnaby, Canada. It will also consolidate its manufacturing operations, resulting in the planned closure of its manufacturing facility in Salo, Finland. R&D in Salo will however continue.
Nokia reported in April sales of €7.4 billion (US$9.7 billion), down 29 percent year-on-year, making a net loss of €929 million, compared to a net profit of €344 million a year earlier. It struggled with poor sales of low-cost phones and its Symbian-based phones, while the share of its new Windows Phone sales was still small.
The company said on Thursday that it was selling Vertu to EQT VI, a European private equity firm, as part of its move to assess the future of non-core assets.
Under the management changes, Nokia announced that it has appointed Juha Putkiranta, formerly senior vice president of supply chain, as executive vice president of operations.
Timo Toikkanen has been appointed as executive vice president of mobile phones. He was earlier vice-president of business development, programs, and special projects. Chris Weber will be executive vice president of sales and marketing, after serving as senior vice president of markets for the Americas. The three executives will take charge on July 1.
In addition to the already achieved annualized run rate saving of approximately €700 million at the end of first quarter 2012, the company targets to implement approximately €1.6 billion of additional cost reductions by the end of 2013, Nokia said.
- 2014 IT Workplace Trends and Salary Guide Staying competitive in the IT market can be challenging. This guide provides you with insight into variety of IT workplace trends including, U.S....
- Datacenter eGuide Read on to learn what technologies are essential for high-performing data centers today, and to get a glimpse of what the data center...
- EndPoint Interactive eGuide In this eGuide, Network World, Computerworld, and CIO examine two endpoint trends - BYOD and collaboration - and offer tips and advice on...
- The Business Value of Continuous Delivery Download this whitepaper to learn more about the business value of Continuous Delivery and see why it could be a game changer for...
- It's not too late...Get Your Mobile Questions Answered Live! How can IT provide seamless and secure mobile communications and collaboration for all? Join this live Webcast as IDG asks an expert panel...
- On-demand webinar - 7 Keys to Service Catalog Implementation Success Watch this webinar to learn 7 crucial keys to make your service catalog a success! All IT Careers White Papers | Webcasts
Our 28th annual survey results show which IT skills are in high demand and which are cooling off. Also, see how your salary stacks up to peers' with our Smart Salary Tool.