Nokia to announce spectacular job cuts in Finland as the company continues to bleed. 3700 in Finland, and 10 000 globally to go

Thursday, 14 June 2012
Mobile phone manufacturer Nokia is cutting 3700 employees in Finland, and 10 000 globally.
The factory in Salo closed down, but a part of product development will remain. 850 jobs will disappear from the factory in Salo, the factory in Oulu to remain.

This cam in an announcement today as Nokia says it is doing its best to inform staff about the coming cuts. It is intended that staff reductions shall be implemented before the end of 2013.

Nokia strives to save €1.6 billion as the company continues to be hard pressed to save more and increase profitability. At the beginning of the year, Nokia's mobile phone sales fell by almost a quarter over the same period the year before, despite the overall market for mobile phones grew.
 
Media reports in Finland had held that Nokia will be announcing major personnel reductions in its operations in Oulu on Thursday morning. Employees at Nokia's mobile phone plant in Salo have also been called to a meeting to hear an announcement by management.

Plans for the gathering being called in Salo were confirmed by the shop steward at Nokia's product development unit, Aimo Leskelä, who however denied any knowledge about what is to be announced.

The newspaper Helsingin Sanomat reported that employees at all of Nokia's units in Finland have been called to attend information sessions by management. According to the paper, Nokia CEO Stephen Elop will be making a statement Thursday at the company's headquarters in Espoo that will be relayed by video link to Salo, Tampere and Oulu.

Nokia also announced a shakeup of its Leadership Team as of the end of this month. Three executive vice presidents are to go: chief marketing officer Jerri DeVard; Mary McDowell, EVP of Mobile Phones; and Niklas Savander, EVP of Markets.                
As expected, Nokia is also selling its Vertu luxury phone unit. The buyer is the Swedish private equity firm EQT.

Nokia is under severe pressure to cut costs and improve its profitability. During the first quarter, its mobile handset sales sank by nearly a quarter compared with a year earlier despite overall growth in the mobile market.   
In February, Nokia announced it was reducing personnel at its plant in Salo by one thousand. At that time the plant employed 1700 people. The company has a total of 2500 staff in Salo.

The news of the planned management information session in Salo was first reported by Salon Seudun Sanomat which wrote that the invitation also includes personnel working in product development.
By Scancomark.se Team