Finnish handset giant Nokia continues its restructuring in an effort to trim overhead and return to profitability. The BBC is reporting that the company will cut 4,000 jobs worldwide and jettison an additional 3,000 positions to Accenture — the consulting company set to manage the Symbian mobile operating system going forward. “With this new focus, we also will face reductions in our workforce,” said Nokia’s CEO, Stephen Elop. “This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programmes for the talented people of Nokia.” The proposed moves are scheduled to take place sometime in 2012. More →
A report filed by Bloomberg paints a grim picture for Nokia Oyj workers the world over. With an announced and looming restructuring in the works, the publication writes that “a reduction in research and development activities is set to be announced by the end of the month” and that “as many as 6,000 jobs” could be cut. Back in February — just days before Mobile World Congress — the company’s new CEO, Stephen Elop, announced that Nokia would adopt Microsoft’s recently released Windows Phone operating system on future smartphones. The announcement also noted that the company would begin to sunset development, support, and research activities centered around the Symbian and MeeGo operating systems — the two mobile operating systems currently utilized by Nokia phones. This reduction in activity translates into a surplus of unneeded, full-time job positions. At the close of 2010, Nokia employed 58,642 people in its handset organisation — 16,134 work in research and development. The company has over 16,000 workers located in Finland, and accounts for just north of 2% of that country’s total gross domestic product.
A Nokia spokesperson confirmed on Thursday that Nokia will cut fewer jobs in an upcoming round of layoffs than it initially announced. Speaking with Bloomberg Businessweek, Nokia spokeswoman Paeivyt Tallqvist confirmed that Nokia’s upcoming workforce reductions would trim 500 workers from various locations in Finland. The cell phone maker said last month that 800 employees would be let go. According to the revised agreement with unions, Nokia will cut 120 jobs from its headquarters in Espoo, 198 from its Tampere location, 103 from Oulu and and 82 from its manufacturing plant in Salo. More →
Horrible news comes from AllThingsD’s NetworkEffect blog Friday morning, as rumors of massive layoffs sullied New Year’s Eve for a social networking pioneer. Myspace may soon find itself full of open space following the dismissal of as much as half of its staff, according to the report. Owned by News Corp., Myspace currently employs 1,100 people, most of whom are located in the U.S. No decisions have been made at this point, and the majority of employees have reportedly been given this past week off in an effort to save money. News Corp. is said to be pushing hard for “drastic cost-cutting measures” in light of the site’s tumbling traffic and revenue. In an effort to rekindle interest in the service, Myspace launched a major redesign about six weeks ago that features an increased focus on entertainment. More →
Nokia confirmed Tuesday that it plans to cut approximately 800 jobs in its home country of Finland. The newly confirmed work force reductions are in addition to the 1,800 jobs Nokia announced it would have to cut this past October. Nokia said it has concluded negotiations with employee representatives, and it will give affected workers between five and 15 months salary as severance. Nokia stated that the new round of layoffs will begin in January 2011, and it hopes some of the laid off employees will be relocated elsewhere in the company. More →
From the brink of an IPO to the brink of mass layoffs, Modu appears to be in deep trouble. The Israel-based company, known for building very tiny, very quirky phones, has turned its back on a recent IPO attempt. According to Israeli financial paper Calcalist, there was simply no interest in the company. Instead, CEO Dov Moran said Modu would be forced to let go of most of its staff. “My heart hurts but [I] had no choice,” Moran told Calcalist. The company currently employs 130 people but only a few dozen will remain on board to sell the company’s current cell phone models. Moran did not state whether or not the company should release its recently-announced Modu W, a small Android-based device that uses Wi-Fi to make cheap VoIP calls rather than sending voice calls over cellular networks. More →
We’ve independently confirmed that all some Verizon Wireless stores will be closing at 4PM this coming Sunday. More →
Fresh off of a solid quarter which saw profits rise 28%, HP announced today that it will be laying of some 9,000 workers as it moves to automate several of its commercial data centers. Although the move will incur a $1 billion charge through 2013, HP ultimately believes the move will ultimately save anywhere from $500 million to $700 million by 2013 and increase increase overall productivity. Approximately 6,000 new workers will be hired in various countries to replace those who lost their jobs. More →
Things aren’t looking so pretty at Sony Ericsson as the handset maker a little while ago posted its fourth-quarter earnings showing a loss of $270 million, pre-tax. Of course, this should come as no surprise to anyone since SE’s earnings reports the past few quarters, six to be exact, were just as disappointing. The company also recently had major layoffs and restructuring the past few months. However, SE is remaining cautiously optimistic for 2010. While other manufacturers are expecting a big rise in the cell phone market in 2010, SE sees things a little more modestly. Since smartphones and high-end devices are Sony Ericsson’s overall weakness right now by comparison to Apple, HTC and BlackBerry, we’re thinking that there is a lot riding on the XPERIA X10 with Android due out very soon. More →
It looks like Verizon has finally figured out what it’s going to do with the Alltel employees that it picked up during its acquisition of the company: give them the axe. More specifically, Verizon is cutting an unspecified number of jobs in Little Rock because those corporate positions are now redundant. The departments being given the axe include finance, marketing and legal, but there is some hope for those losing their jobs — Verizon would be more than happy to have them apply for positions in its call centers. We’re not sure if being asked to step down from finance to handle customer complaints over the phone is a nice offer, but having a job is better than no job, right? More →
As Finnish cell phone giant Nokia continues to cut costs in an effort to combat declining demand, the company recently told Reuters it would shed an additional 490 jobs in the near future. 170 employees from Nokia’s logistics, production management and production support divisions will be released and the company will extend its Voluntary Resignation Package to 320 workers at its Salo facility. Nokia had already implemented a temporary layoff schedule at its plant in Salo, but apparently the measure wasn’t as effective as it had hoped. So far this year, Nokia has cut approximately 4,000 jobs as it pushes to reduce annual expenses by nearly $1 billion.
The heat is on and Nokia appears to be feeling the burn as much as the next company as it has just announced a new round of cost-cutting measures that will go into effect next week. The Finnish handset manufacturer turned Internet Company revealed today that it will be introducing a new Voluntary Resignation Package that invites employees to voluntarily and amicably part ways with the company. This of course is in addition to the recent news of massive temporary layoffs at its production plant in Salo. A sound word byte from Hallstein Moerk, Nokia’s Head of Human Resources:
The response from employees and employee representatives in proposing ideas to help reduce personnel-related costs has been encouraging. We have considered these and are now announcing voluntary initiatives that could contribute to our efforts to adjust our cost base to the current market environment. If successful, the voluntary initiatives will lessen the need for involuntary redundancies.
Nokia will put the package into effect beginning March 1st and it will remain on the table until 1,000 employees have taken Nokia up on its offer. In addition, Nokia is encouraging its staff to request unpaid leave of up to one month and will happily grant such requests provided “business continuity is not jeopardized”. Sad news indeed, but we’re certainly hoping enough people can take advantage of the VRP and land gigs elsewhere so that Nokia doesn’t have to resort to any more “involuntary redundancies”.
As MWC draws closer mobile fans around the world wait in anticipation as mobile companies prepare some of their biggest announcements of the year. Leading up to MWC, news coming from manufacturers is historically positive – a taste of things to come in Barcelona. In this economic climate however, mobile companies find themselves unable to wait until this sacred time has passed and we are still seeing bad news come down from every corner of the industry. Today’s news comes from our friends in Finland as Nokia discusses the coming year with two key phrases: scale down and reduced market demand. Juha Putkiranta of Nokia:
With these plans, we aim to scale down Salo production to reflect reduced market demand, while operations in the factory continue uninterrupted.
Nokia plans to cut handset production and layoff the entire staff at its Salo plant (2,500 workers) on a temporary rotational basis. In other words, the plant will remain operational but only 20 to 30 percent of its staff will be on hand at any given time. Following Nokia’s closure of its German manufacturing plant, Salo is the last major handset plant in Western Europe and had been used to produce some of Nokia’s higher-end handsets, the bulk of which will now likely be moved to foreign plants. All of these moves of course, are part of an effort to shave $905 million from its operating expenses this year as many project Nokia’s shipments and sales to continue to decline. Less market demand, declining numbers and more competition are never a good trio for any market leader but we’re hoping Nokia has some tricks up its sleeve for 2H 2009 and beyond.