Failing to reverse its downturn in fortunes Nokia has confirmed it is to cut an additional 10,000 jobs by the end of next year
Formerly the world’s largest handset manufacturer, Nokia has struggled to carry its successes into the modern smartphone market with a number of flailing Symbian handsets causing the Samsung and HTC rival to partner with Microsoft to push the software giant’s Windows Phone operating system.
The latest round of layoffs, which are set to be completed by the end of 2013, follow the shedding of around 14,000 jobs last year with Nokia looking to refine its practices and reduce its overhead costs by around $2 billion (£1.3bn).
"We have very challenging business conditions and its very important that we move forward aggressively and urgently," Nokia CEO Stephen Elop said. "We need to ensure that we have the capital requirements in place to help us through our transition."
Whilst the 10,000 jobs losses are set to grab the headlines, the mobile phone giant has revealed it is also planning on closing research and development facilities in German and Canada whilst the company’s largest Finland based manufacturing plant is also for the chop.
"With these planned actions, we believe our Devices and Services business has a clear path to profitability,” Timo Ihamuotila, Nokia's executive vice president and CFO, said. “Nokia intends to maintain its strong financial position while proceeding aggressively with actions aimed at creating shareholder value."WSJ