In a bid to streamline IT operations, Nokia has announced plans to cut 300 employees and outsource another 820 to other firms.
The Finnish phone maker is gearing up to report full Q4 results on January 24, on the back of preliminary results which were "better than expected" due to strong holiday sales of its Lumia smartphone range. In total,were sold and "smart devices" resulted in net sales worth $1.57 billion. However, in the face of this unexpected popularity, the firm is not sitting on its laurels and is continuing with restructuring efforts to keep the company as profitable as possible.
As a result, the Finnish firm will be reducing its global IT organization by 300 people, and will transfer up to 820 employees to its operating partners, Indian firms HCL Technologies and TATA Consultancy Services.
The company believes that this move will "increase operational efficiency and reduce operating costs" by making the IT sector an appropriate size for Nokia's current operations.
In June 2012, Nokia announced its intentions to cut 10,000 jobs by the end of 2013, something chief executive Stephen Elop said was a "difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength." Nokia says that this latest round of cuts are the "last anticipated reductions" of the announcement.
The majority of the workers affected by this statement are based in Finland, and Nokia says that it will offer these employees financial help and a support program.