The cell phone company with the largest market share a couple of years back and the largest phone maker by volume is going through a tough phase. Nokia is planning on giving 7000 people pink slips to cut costs.
Majority of the job cuts are expected in Finland, Denmark and Britain where Nokia has lost its major share. In Finland, around 1400 job cuts are expected and a total of 2600 jobs between Denmark and Britain!! This will definitely come as a blog to the internal stake holders of Nokia.
Nokia has been unable to face fierce smart phone competition and come up on top in this category. It has launched a number of N series as well as E series which have been real hits. However it has not been able to get the same numbers and growth which Iphone or Samsung or other smart phone companies have gotten.
On the other hand, It is also outsourcing its symbian activities to Accenture thereby cutting a further billion euros from its cost. From now Accenture will offer support for Nokia’s Symbian smart phones as well as Microsoft windows phones. Nokia’s own 3000 employees might be transferred to Accenture to support Accenture.
“Restructuring had been widely expected but Nokia will be hoping that the transfer of 3,000 of jobs to Accenture will help cushion the blow as it ramps down its Symbian investments,” said Ben Wood, head of research at CCS Insight.
Nokia is increasingly manufacturing Microsoft windows based phones as its symbian market drops.
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About Hitesh Bhasin
