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Nokia abandons Symbian, cuts 7000 jobs

Posted: 29 Apr 2011     Print Version  Bookmark and Share

Keywords:Symbian  job cut  Windows Phone 

Nokia has announced 7,000 job cuts. The troubled cell-phone giant will also outsource its Symbian software activities and transition about 3,000 employees to Accenture.

The companies expect completion of the final agreement during summer 2011, and expect the transition of employees by the end of the calendar year 2011.

Transitioning employees, located in China, Finland, India, United Kingdom and the United States, will initially work on Symbian software activities for Nokia. Over time, Accenture and Nokia will seek opportunities to retrain and redeploy transitioned employees.

In total, Nokia also plans to reduce its global workforce by about 4,000 employees by the end of 2012.

These measures are part of Nokia's target to reduce its Devices & Services operating expenses by Rs.6,410.26 crore (1 billion euros) for the full year 2013 in comparison to the full year 2010.

Nokia also plans to consolidate the company's research and product development sites. All employees affected by the reduction plans can stay on the Nokia payroll through the end of 2011.

"At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions," said Stephen Elop, Nokia president and CEO, in a statement. "However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programmes for the talented people of Nokia."

Elop, a former Microsoft vice president who joined Nokia in September, recently announced a broad corporate reorganization including plans for a significant but unspecified number of layoffs.

As reported, Nokia's new strategy, built on adopting Windows Phone as its primary smartphone platform, is a huge win for Microsoft but raises several questions about the long term leadership of the Finnish cellphone giant.

Microsoft gains the world's largest cellphone maker as a lead partner for establishing Windows Phone, a promising but late-to-market smartphone operating system. However, Nokia will have to be content with being just one of Microsoft's partners for a strategic platform that launched in October with handsets from rising players including Samsung and HTC.

- Mark LaPedus
  EE Times

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