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Nokia To Cut 10,000 Jobs and Close 3 Facilities

Posted by timothy on from the role-of-management-is-to-suck dept.

parallel_prankster writes "NY Times reports that Nokia said on Thursday it would slash 10,000 jobs, or 19 percent of its work force, by the end of 2013 as part of an emergency overhaul that includes closing research centers and a factory in Germany, Canada and Finland, and the departures of three senior executives. The company also warned investors its loss was likely to be greater in the second quarter, which ends June 30, than it was in the first, and that the negative effects of its transition to a Windows-based smartphone business would continue into the third quarter. Nokia, based in Espoo, Finland, posted a loss of €929 million, or $1.2 billion, in the first quarter as sales plummeted 29 percent. Once the undisputed global leader in the mobile phone business, Nokia has been outcompeted by Apple, as well as by Samsung and other makers of handsets running Google's Android operating system." (Here's another source, if you're hit by the NYT paywall, and the company's own positive spin.)

3 of 350 comments (clear)

  1. The IP Vultures are Circling by Anonymous Coward · · Score: 5, Interesting

    Meanwhile, Microsoft, Apple, Samsung, and Google IP lawyers are circling to fight over the carcass (Patent Portfolio) of Nokia.

  2. Nokia's death spiral continues by tuffy · · Score: 5, Interesting
    I've found Tomi's ongoing saga of Nokia's downfall to be quite interesting. A choice quote about today's news:

    The worse news is the guidance about Q2 profit warning and Q3 smartphone sales problems, that was hidden in the story about layoffs. So before, in Nokia's profit warning, Nokia said it will have problems with the handset unit profitability (producing a loss) in both Q1 and Q2. The losses for handsets in Q2 were supposed to be similar to Q1 ie -3%. Now we hear that Q2 losses will be bigger than 3%. This is VERY BAD NEWS. It really means that Nokia is falling into the hole and the rate of the fall is only increasing.

    The gist of it being that Windows isn't working, and Elop is killing any possible "plan B" for the company.

    --

    Ita erat quando hic adveni.

  3. I tend to disagree here.. by GhostIdentity · · Score: 5, Interesting

    You may be right, but Nokia still had a fat chance of comeback with MeeGo, as already proved by Nokia N9 (I own one, and I easily claim it to be better than most, if not all, of the current smartphones due to its intuitive Swipe UI). Who was saying no to building Windows smartphones? But Elop apparently wasn't satisfied with only that. He had to kill the burning platform (Symbian) as well as the blooming platform (MeeGo). That is what has pushed Nokia off the cliff, IMO. I may seem to blame Microsoft (I actually do it inside my mind, though, having been a genuine Nokia fan since I became aware of phones), but the fact still stands that Elop cruelly slaughtered any remaining chances that Nokia had, with or without Microsoft behind him.