Nokia to reduce 10,000 Jobs, R&D Projects Globally
TNI Bureau: Mobile major Nokia in a statement said that it will cut 10,000 jobs globally by the end of 2013 and shut down some facilities in Ulm, Germany and Burnaby, Canada.
The Finnish multinational communications corporation has employed 1, 22,148 people as of March 31, 2012. The cut in devices and services is aimed at balancing its investment and rescaling the company.
The firm will reduce certain research and development (R&D) projects, which will result in closure of its facilities in Ulm, Germany and Burnaby, Canada.
It will reduce manufacturing operations and close a facility in Salo, Finland. However, R&D development in Salo will continue.
The firm said that it will focus on marketing and sales activities, including prioritisation of key markets. It will simultaneously focus on its IT, corporate and support functions.
“In addition to the already achieved annualised run rate saving of approximately 700 million euro at the end of first quarter 2012, the company targets to implement approximately 1.6 billion euro of additional cost reductions by the end of 2013,” the statement said.
It also announced to sell its luxury mobile phones business, Vertu to an European private equity firm EQT VI.