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Nokia to cut 10, 000 jobs

Published by on Jun 14th, 2012, No Comments

It seems Research in Motion isn’t the only mobile phone manufacturing company to cut a significant amount of jobs in recent events. Nokia will also be shedding employees due to a decrease in market share and to save further financial losses.

Bloomberg has reported that the Finnish company plans to cut as many as 10, 000 jobs across the company as well as shut down production and research facilities in Finland, Germany and Canada. Staff cuts include chief marketing officer Jerri Devard, executive VP of mobile phones Mary McDowell and executive VP of markets Niklas Savander.

This decision comes under the leadership of Stephen Elop, who took the position of CEO in 2010. Elop’s reorganisation comes after Nokia reported a decrease in sales and four straight quarterly losses while Apple Inc. and Samsung devices have seen a gain in the smartphone market. Nokia’s stock has recently fallen to its lowest since 1996 and has lost more than 70 billion euros in market value since Apple introduced the iPhone back in 2007.

In order to challenge Apple’s iPhone and devices running on Google’s Android OS, Nokia launched its Lumia smartphones running on Microsoft’s Windows Phone rather than its usual Symbian OS. Last quarter, While Nokia shipped more than 2 million Lumia phones, Apple had sold 35.1 million iPhones.

In the first quarter, Nokia’s decline in shipment, gave Samsung the opportunity to become the world’s biggest mobile-phone maker.

Nokia Siemens, which is also struggling to return to profit, is cutting 17,000 jobs worldwide to save 1 billion euros in annual operating expenses and production costs by 2013.

Nokia has also sold its luxury brand Vertu to private equity group EQT VI in a deal that is expected to close during the second half of 2012 leaving the company with just a 10 percent share.

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