Finland’s largest company Nokia continues to shrink and has announced a fresh cull of jobs that will see 10,000 posts go by 2014, as part of plans to slim its operating expenses while sharpening its strategy and steering a return to profitable growth.
This latest round of job cuts brings the total lay offs to 40,000 since 2010, and in combination with other money-saving initiatives, should see operating costs fall from €5.25bn in 2010 to around €3bn this year.
Timo Ihamuotila, Nokia’s executive vice president and CFO, said: “With these planned actions, we believe our Devices and Services business has a clear path to profitability. Nokia intends to maintain its strong financial position while proceeding aggressively with actions aimed at creating shareholder value.”
Nokia has also announced that it is selling its luxury phone brand Vertu to Swedish private equity group EQT, and that a number of its senior executives will be leaving the company, including CMO Jerri DeVard, Mary McDowell (executive vice president of Mobile Phones) and Niklas Savander (executive vice president of Markets).
Meanwhile, its subsidiary Nokia Siemens Networks (NSN) confirmed earlier this year that it planned to reduce its own headcount by 17,000 (almost a quarter of its global workforce) within the next two years, as part of efforts to streamline its business and focus purely on mobile broadband.