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Nokia cuts another 3,500 jobs

Summary: Nokia said that it will cut jobs in manufacturing, its location and commerce unit and the workers that support those efforts.

Larry Dignan

By for Between the Lines |

Nokia said Thursday that it will cut another 3,500 jobs across the company as it tries to align its costs with falling market share.

In a statement, Nokia said that it will cut jobs in manufacturing, its location and commerce unit and the workers that support those efforts. CEO Stephen Elop said:

"We must take painful, yet necessary, steps to align our workforce and operations with our path forward."

Elop also reiterated Nokia's commitment to Europe, which is taking the brunt of the job juts.

In April, Nokia said that it would cut 4,000 jobs as it focused its research and development on smartphones. Nokia's plan this layoff is to focus its manufacturing operations in Asia where it has the most demand. Specifically, Nokia said:

  • It will close a plant in Cluj, Romania by the end of 2011;
  • Review manufacturing operations in Salo, Finland, Komarom, Hungary and Reynosa, Mexico. Nokia said those plants will continue to focus on European and North American customers, but the focus is going to shift to "market-specific software and sales package customization." Nokia said there are likely headcount reductions in the first quarter of 2012.
  • Nokia added that it will consolidate its location and commerce business including Navteq. Nokia said its location and commerce development will focus on Berlin, Boston and Chicago. As a result, Nokia will shutter operations in Bonn, Germany and Malvern, PA.

The latest layoffs will be complete by the end of 2012. "Consultations" with employees involved in the previous round of layoffs are underway.

Related:

Nokia cuts 4,000 jobs; Symbian developers to land at Accenture

Topics: CXO, Nokia, IT Employment

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15 comments
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  • What happened to the Microsoft-Nokia Alliance?

    It looks like Microsoft can't sell their security package to the cell tower internet folks.

    <i><font size=1><Font color=navy>"On April 21, Microsoft and Nokia signed off on the collaboration agreement the pair announced in mid-February.

    The two haven???t been standing still since the billion-dollar-plus deal was unveiled on February 11; they were working under a ???non-binding term-sheet??? while the top brass nailed down the final details of the agreement.

    In today???s press release, company officials from Microsoft and Nokia stressed that they???ve made ???significant progress on the development of the first Nokia products incorporating Windows Phone.??? The release said there are ???hundreds of personnel already engaged on joint engineering efforts, the companies are collaborating on a portfolio of new Nokia devices,??? and that ???Nokia has also started porting key applications and services to operate on Windows Phone and joint outreach has begun to third party application developers.???</font></font></i>
    Joe.Smetona
    Reply Vote

    • Nokia chose Win 7 for the money

      they only got chump change and lost market share.<br><br>RIM is doing bad, but Nokia is almost dead.

      MS is clearly not the future for Mobile.
      Uralbas
      Reply Vote

    • RE: Nokia cuts another 3,500 jobs

      @Joe.Smetona Alogical approach. Agreed. <a href="http://www.cep9.com/en/nokia/">Nokia</a> & Microsoft friendship will cost nokia more than m$.
      oyunoyun
      Reply Vote

  • RE: Nokia cuts another 3,500 jobs

    ???We must take painful, yet necessary, steps to align our workforce and operations with our path forward.???

    TRANSLATION: "We're screwed so you 3500 people need to go so we can stay on our sinking ship just a little longer."
    Bates_
    Reply Vote

  • RE: Nokia cuts another 3,500 jobs

    all this is beacause of the M$ deal.
    The Linux Geek
    Reply Vote

  • RE: Nokia cuts another 3,500 jobs

    3 of the 4 people above me can't read. This has nothing to do with Microsoft because this affects manufacturing overseas. Microsoft is a U.S. based company providing the software. Its up to Nokia on what they want to do with the hardware.
    LoverockDavidson_-24231404894599612871915491754222
    Reply Vote

    • LOL.

      @LoverockDavidson_ One + Billion dollars down the drain.

      There must be a more productive place for you to shill.
      Joe.Smetona
      Reply Vote

      • RE: Nokia cuts another 3,500 jobs

        @Joe.Smetona
        LOL are you just going to keep posting off topic comments? Because I'm really getting a good laugh out of this.
        LoverockDavidson_-24231404894599612871915491754222
        Reply Vote

      • Your comments are too premature...

        so, let's wait to see where Nokia is at this time next year, and what the whole WP7 ecosystem has done.<br><br>BTW, how much in research and manpower does Nokia save with not having to design and maintain their own OS?
        adornoe
        Reply Vote

      • Nokia-Microsoft strategic partnership.

        @adormoe ...<br><br>As is in the typical Redmond style, they are trying to lock in a manufacturer with a billion dollar deal. Wal-Mart (no. 1 in the Fortune 500) only advertises Androids, nine to be exact, in the last sale flyer I saw. I don't know of anyone who owns an MS smartphone and the last advertisement I saw was the guys jumping out of an airplane.<br><br>As far as Android modifications by the carriers, it's open source, and modifications are best handled by the hardware people. At least, they are able to modify the source code and compile it into their versions, something that does not happen with MS.<br><br>They are closed source and have to spoon feed information to the hardware group preventing their priceless source code be compromised and published. My point: It hasn't been a problem with all the Android vendors out there. Where that arrangement is going to kill MS is when there's a problem and the manufacturer has to make immediate changes and are faced with MS red tape and delays.<br><br>I alpha tested a Firefox version a while ago and there was a problem printing from the browser. I emailed the developer and got a response that afternoon. I got another email when the problem was fixed two days later. The developer can immediately view the LInux source code and see exactly what he has to do. In the same respect, he can make changes to Linux if he sees something and submit it to the development group. Very little red tape, if any.<br><br>Some corporate entity from Nokia made a decision. His company would do better laying off 4,000 and 3,500 workers, (it doesn't matter if they are on the moon). Unless they start using Android, those people are gone. The sales aren't going to be there. People using Android or Apple are not going to deal with an MS OS.<br><br>To further illustrate, recently MS started advertising on the radio with a really dumb commercial that has some type of MS registered trademark legal disclaimer at the end. Who is thinking up this stuff? WP7 in a year is not going to get any better. 3D Tri-Gate transistors are coming out in the I-Phone. That's earth shaking technology and it hasn't even been released yet.<br><br><a href="http://www.extremetech.com/computing/94198-shadows-of-the-a6-what-to-expect-from-apples-next-microprocessor?print" target="_blank" rel="nofollow"><a href="http://www.extremetech.com/computing/94198-shadows-of-the-a6-what-to-expect-from-apples-next-microprocessor?print" target="_blank" rel="nofollow"><a href="http://www.extremetech.com/computing/94198-shadows-of-the-a6-what-to-expect-from-apples-next-microprocessor?print" target="_blank" rel="nofollow">http://www.extremetech.com/computing/94198-shadows-of-the-a6-what-to-expect-from-apples-next-microprocessor?print</a></a></a><br><br>The Amazon Fire is coming out next month for $199.00 and is about as hot as something can get. And it's Android. Why isn't the great and powerful OS from Redmond being used? They appear to be messing up everything nowadays. I'm sure someone is working on the Android Desktop to finish things off and take over the XP commercial use crowd.<br><br><a href="http://www.youtube.com/watch?v=NKkvPxYNh9A" target="_blank" rel="nofollow">http://www.youtube.com/watch?v=NKkvPxYNh9A</a>
        Joe.Smetona
        Reply Vote

      • Joe.Smetona: All still irrelevant, no matter how many points you bring up

        and no matter how much you might dislike Microsoft.<br><br>Like I said, wait a year, and then do your comparisons and attacks. You are being way premature with your predictions.<br><br>Microsoft didn't get to be the biggest software company in the world for nothing (btw, Apple is bigger just in the market cap area).<br><br>The fact remains that, what Microsoft has done with WP7 is something that receives great technical reviews from just about anybody that tries it or uses it. Just knocking a company and a product because you dislike a company is no way to make smart decisions.

        The idea about "lock-in" is something that occurs quite often, and especially with proprietary code and applications. But, lock-in occurs in many other areas and is very commonly accepted practice. So, you're just grasping at straws with your insecurities and your hate of Microsoft.
        adornoe
        Reply Vote

      • &quot;We're ready to believe you&quot; --Ghostbusters

        <font size=2>@adornoe...<br><br>Good Luck. Microsofts' business model hasn't had secure source code in 25 years. AV is not an option, it is a necessity.<br><br>"Great technical reviews"? From who? ZDnet and Ed Bott, the renowned ministers of Propaganda? Go no further than the complete absence of reporting on the TDL-4 botnet that infected 4.5 million Windows users in the first three months of 2011. And let's not forget Ed's article on the security improvements of Windows where he deleted 45 non-offensive posts. That pesky botnet talk isn't good for promoting Microsofts' glistening image. Ed had his hands full that day. My contributions were completely deleted. Post an offensive message and they remove the text and replace it with "Message has been deleted". Bring up negative comments about MS and everything disappears including the initial thread. It's ZDNet's trap door for negative truths about Windows (lack of) security, but only those that really strike a nerve.<br><br>This lock-in garbage is an industry first, totally unnecessary for security on an OS with secure source code like Linux. My family has been using Linux for 9 years without AV and we don't have issues, especially botnets. Per typical Microsoft practice, it's designed to "lock-out" or minimize installations of XP and Linux on new hardware.<br><br>Microsoft isn't a player in smartphones. Period. What are you trying to spin? Where have they been the last year or so? Wal-Mart doesn't seem to need them or want to promote them. Microsofts' business practices are placing them in this position. They just aren't able to compete and they can't even buy themselves a seat. They are becoming bullies that no one has to bother with anymore.</font>

        The world and markets are changing. Microsoft tactics worked 15 years ago, but now, people are noticing open source and it is becoming very viable. Apple and Android users don't feel some overriding need to use Microsoft. The TDL-4 botnet is not going to go away, it will only get worse. It can continually attack Windows because of it's source code and design. Windows 64 bit version with driver signing has also been successfully attacked by TDL-4. That was the last safe haven for Microsoft. Microsoft could be a great company, but it's greedy and has lost a lot of ground.

        http://www.youtube.com/watch?v=NKkvPxYNh9A
        Joe.Smetona
        Reply Vote

      • Joe.Smetona: Pretty much in denial, aren't you?

        Look, WP7 is still fairly new, and still needing more exposure and more advertising. And, the reviews aren't just from the people at ZDNet; they're from many sources. And, the fact is that, when it comes to Android vs Mango, head-to-head, Mango wins head down. It doesn't matter that Android has had a three year head-start, Mango is a superior OS, and it will eventually overtake Android. Better always overtakes adequate, and best always overtakes better. iOS and Android are the better and adequate, and Mango is superior to both. It's just a matter of time before the best OS also becomes the bigger seller. You can't just look at current market penetration and make silly conclusions about Microsoft not doing well in the smartphone market. Current market usage is not necessarily what it will be in a year or two. The droid phones took 3 years before overcoming the iPhone lead, and from all indications, WM7 is doing better at this stage than the Droid phones after about a year in market. Wait a year and then make a better informed post. All that you're doing right now is expressing your dislike for all things Microsoft.

        When it comes to security, from all indications, Microsoft is doing quite well in that department, and considering that they have billions of Windows installations in the marketplace, they have a record that no other OS can match, not Apple's OSes nor any Linux release. Linux is still a very irrelevant OS on desktops and laptops, and not even in the same category when it comes to number of users, therefore, you are comparing an elephant to a mite, where the elephant is very noticeable and a big target, whereas the mite is unnoticeable and not even worth making it a target.

        When it comes to markets, Microsoft is still the most relevant tech company out there, with its OSes and major applications being used in billions of homes and in many millions of businesses, small and medium and large. Linux is used widely on the server side, but it's not a pertinent force in the general marketplace. You like to go back to the beginning, some 20-25 years ago, but, nobody in his right mind would make any smart conclusions by comparing the past to the present state of the computer field.

        Basically, you're operating from the simple mindset of a Microsoft hater or detractor, and most people would immediately dismiss your opinions if you were expected to give your advice on any purchase of software or hardware. Most of what you're about is pure nonsense.

        Myself, I could give a damn. I don't personally care about WP7 or Android or iOS, or any hardware. Give me a product or software that works well and that will do what I wish to have done, and if it does it at a decent and affordable price, I'll make the purchase. I'm no in love with Microsoft nor Apple nor Google nor any other company. What I do love is a product or piece of software that performs as I like. It's so utterly stupid to use a product or service, and then to go about spouting the virtues of the company that makes it. If I don't get paid for advertising a product or service, I'm not going to give them free advertising by telling my friends of fellow bloggers about it. I will, however, recognize when a product performs well, but, it's not the same as becoming a fanboi for a company. iPhones were great when they first came out, and I loved how they performed and how nice they looked. The droid phones were great when they first came out, and I liked the idea that they were a lot less expensive than the iPhones and could perform most of the same tasks as the iPhones, but for a lot less money. Now, WP7 is out, and it performs quite well too, and, from all indications, it might outperform iOS and Android. But, now iPhone 5 with iOS5 will be coming out, and I'll might have to change my mind again about which is the "new best". But, the good thing about all of this is that, it's a moving market and no one player can feel secure about its market share. I have no doubt that iOS and Android phones will lose more market share to WP7, and that has nothing to do with me trying to elevate Microsoft; it has a lot to do with the reality on the ground. Apple makes some real good products, but, to me, they're not really hundreds of dollars better than what the competition offers. If Apple's products were to come down to prices comparable to what the competition offers, I might be an exclusive user for all things Apple. But then, they'd have to offer a much wider suite of applications and become competitive in the business side.

        Now, go along and play with your little, unnoticeable OS.
        adornoe
        Reply Vote

  • Will There Still Be A Nokia Left?

    Microsoft's Great Hope for Windows Phone 7 could yet disappear from existence before it can even bring out its first Dimdows phone.

    I really, really hope Redmond has got a Plan B for saving its mobile platform...
    ldo17
    Reply Vote

  • rtbdwxs 65 hhg

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    cdsfwrryd53-24379032196556656258390695741336
    Reply Vote
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