Nokia this morning announced
“plans to take additional actions to align its workforce and operations”. You
know what that means: mass layoffs and then some. In a press release, the
Finnish mobile giant says it will reduce its staff by at least 3,500 employees
by the end of 2012.
Nokia also says there will be
reductions in manufacturing; the company is closing its manufacturing facility
in Romania by the end of this year and says it will be doubling down on its
Asian factories instead.
Nokia will also “review the
long-term role” of its manufacturing operations in Salo (Finland), Komarom
(Hungary) and Reynosa (Mexico).
Less than half a year ago, Nokia cut 4,000
jobs and transferred another 3,000 Symbian employees to Accenture.
We assume the layoffs announced today are in addition to those cuts.
In a separate statement, Nokia says
it has found a new executive chairman for Nokia Siemens
Networks (current chairman Olli-Pekka Kallasvuo is stepping down),
and that it is investing another 500 million euros (roughly $682 million) in
the business – as will its partner Siemens.
Joy to the world!
What a trainwreck.
Full press release:
Nokia continues to align its
workforce and operations
ESPOO, FINLAND–(Marketwire – Sep 29,
2011) -
Next phase of changes to improve
efficiencies in manufacturing, Location & Commerce, and supporting
functions
Espoo, Finland –
Nokia today announced plans to take
additional actions to align its workforce and operations.
The measures support both the
execution of the company’s strategy and the savings target the company
announced earlier this year, and also target to bring efficiencies and speed to
the organization.
Earlier this year, Nokia announced
changes primarily focused on aligning its R&D operations in Smart Devices
and Mobile Phones. Today, the company announced the next phase of operational
alignment, which includes plans for reductions in manufacturing, the Location
& Commerce business, and supporting functions.
Nokia plans to adjust its
manufacturing capacity and renew its manufacturing operations to better serve
its global network of customers, partners and suppliers in the following
manner:
- Focus its feature phone
manufacturing on those locations with optimal proximity to suppliers and key
markets. As a result, Nokia plans to close its manufacturing facility in Cluj,
Romania by the end of 2011, as Nokia’s high- volume Asian factories provide
greater scale and proximity benefits.
- Review the long-term role of its
manufacturing operations in Salo, Finland, Komarom, Hungary, and Reynosa,
Mexico. These factories are expected to continue to play a key role in serving
European and North American smartphone customers, but the plan is to gradually
shift their focus to customer and market-specific software and sales package
customization. It is estimated this would have an impact on the number of
personnel in 2012, with no impact in 2011. Nokia will engage in discussions
with employee representatives and stakeholders in these sites, and expects to
have more visibility into the possible headcount impacts in the first quarter
of 2012.
Nokia previously announced its plans
to create a Location & Commerce business consolidating location assets
including NAVTEQ and Nokia’s social location services operations. As part of
consolidating this business, Nokia has identified potential synergies and
opportunities to increase effectiveness through automation. Location &
Commerce is responsible for driving the delivery of the world’s best digital
mapping content, location platform and social- location experiences.
Nokia plans to concentrate its
Location & Commerce development efforts in Berlin, Boston, Chicago and
other supporting sites, and plans to close its operations in Bonn, Germany and
Malvern, US.
Nokia is also starting consultations
with employees in Sales, Marketing and Corporate Functions, in line with
Nokia’s earlier announcement on April 27, 2011.
“We are seeing solid progress
against our strategy, and with these planned changes we will emerge as a more
dynamic, nimble and efficient challenger,” said Stephen Elop, Nokia President
and CEO. “We must take painful, yet necessary, steps to align our workforce and
operations with our path forward.”
“Europe is core to Nokia’s future.
In addition to our headquarters, we have a strong R&D presence in Europe.
We have four major R&D sites in Finland and two major R&D sites in
Germany, as well as Nokia Research Centers and other supporting R&D sites
in Europe. Nokia also retains a strong local presence in our many sales offices
throughout this region, as well as our operations in Salo and Komarom,” said
Elop.
The planned closure of the Cluj
factory combined with adjustments to supply chain operations is estimated to
impact approximately 2,200 employees. The planned changes in the Location &
Commerce business are estimated to impact approximately 1,300 employees. These
personnel reductions are in addition to the measures announced in April and are
expected to take effect by the end of 2012.
In line with the company values,
Nokia will offer employees affected by the planned reductions a comprehensive
support program. Nokia remains committed to supporting its employees and the
local communities through this difficult change.
About Nokia
Nokia is committed to connecting
people to what matters to them by combining advanced mobile technology with
personalized services. More than 1.3 billion people connect to one another with
a Nokia, from our most affordable voice- optimized mobile phones to advanced
Internet-connected smartphones sold in virtually every market in the world.
Through our services, people also enjoy access to maps and navigation on mobile,
a rapidly expanding applications store, a growing catalog of digital music, and
more. Nokia’s NAVTEQ is a leader in comprehensive digital mapping and
navigation services, and Nokia Siemens Networks is one of the leading providers
of telecommunications infrastructure hardware, software and professional
services globally.
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