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(Image Source: All Mobile Brands)
Nokia announced Thursday it will be cutting 10,000 jobs in an attempt to stay in the mobile
market. Fox Business explains.
“That includes closing the cell phone maker’s only plant in its home country of Finland...The
company says it's looking to return profitable growth by improving its operating model.”
If the cuts are completed, this will bring the total number of jobs cut under CEO Stephen
Elop to 40,000. Philadelphia’s KYW reports competition has cut the company’s shares
more than 70 percent in less than two years and it's time they make a move.
“The company’s CEO says Nokia is forced to reorganize after losses in four straight
quarters...The company says competitions in the mobile industry has hurt its smartphone
business to a greater extent than expected.”
So what’s the plan? The BBC says a few things are on the company’s to-do list.
Developmental sites in Finland, Germany and Canada will close. Plus, the Vertu luxury
phone line—which can cost as much as $310,000—is being sold to a private equity firm. All of
this is expected to cost around $1.5 billion over the next two years.
The Register says Nokia’s basically doing what it’s always done—just with less—and
questions if this will fix the main issue at hand.
“Cutting costs is all very well, and laying off 10,000 people should reduce running costs
even if it will take a lump of cash to do, but reducing costs doesn't address the ‘competitive
industry dynamics’ that are hurting Nokia so badly.”
Three VPs have also stepped down as part of the cuts. The company hopes to complete the
planned cuts by the end of next year.