Nokia announces leadership changes, possible cuts of up to 10,000 jobs

Nokia announces leadership changes, possible cuts of up to 10,000 jobs

Summary: It's always sad to hear companies cutting back on employees, especially in this particularly challenging economic time. Then again, Nokia has to do something to turn around their financials.

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TOPICS: Nokia
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While Apple and Google are rolling along in the mobile space, RIM and Nokia are struggling. Thus, it was sad to hear that Nokia may cut up to 10,000 jobs around the world, including shutting down production at a facility in Finland. They also announced several leadership changes in an attempt to refine their strategy and tighten up their strategy. Lastly, Nokia decided to sell off their Vertu brand to EQT VI.

Rafe and Steve have a good breakdown and summary of the press releases on All About Symbian. While it is unfortunate that up to 10,000 people will soon be looking for work, Nokia does need to focus and get back to a profitable situation to survive and succeed over the long term.

Regarding personnel, Nokia revealed the following changes:

Nokia today announced that it has appointed Juha Putkiranta as executive vice president of operations; Timo Toikkanen as executive vice president of Mobile Phones, Chris Weber as executive vice president of sales and marketing; Tuula Rytila as senior vice president and chief marketing officer; and Susan Sheehan as senior vice president of communications. Putkiranta, Toikkanen and Weber also will join the Nokia Leadership Team effective July 1, 2012. Nokia also announced the following executives are stepping down from the Nokia Leadership Team effective June 30, 2012 to pursue other opportunities outside of Nokia: Jerri DeVard, executive vice president and chief marketing officer; Mary McDowell, executive vice president of Mobile Phones; and Niklas Savander, executive vice president of Markets.

It is a time of change and 2012 will definitely be an interesting year in the mobile space. I look forward to seeing a PureView Nokia Lumia Windows Phone later this year or in early 2013.

Topic: Nokia

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14 comments
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  • Nokia s a "Burning Company"

    Ever since Microsoft installed the new CEO, Nokia has been sinking. Elop starting a fire on a sinking ship will not stop it from sinking, it will just make it happen faster. The only Plus to this, is Microsoft will be able to save a few million, when they buy up the assets, of the bankrupt Nokia, rather than buying the company.I expect Elop to get rehired by Microsoft within the next year, and possibly get a bonus for helping Microsoft acquire Nokia for pennies on the Hundred, as opposed to pennies on the dollar
    Jumpin Jack Flash
    • Windows Phone deal was to be its saviour...

      Now theyre talking 2013. This is so funny, go MS and their tech partners-)
      Richard Flude
      • 2013?

        Is that when Microsoft will pick over the carcass of Nokia? What would be truly funny is: If either Apple, or Google buys Nokia's Patents, that would royally screw Microsoft, as Microsoft couldn't then try and screw everyone else.
        Jumpin Jack Flash
      • FUD. Not WP7 and they were always talking the 2015-1016 timeframe.

        This is just part of the original plan from 2010. All manufacturing was always moving to east asia for supply chain purposes. This is nothing unexpected.
        Johnny Vegas
  • As long as they stay alive...

    and continue to build superior products, I'll be happy :)
    kstap
    • LoL "Superior products"?

      Like phones that are put together with "double sided tape", instead of screws? Or how about those "removable batteries" in the "Flagship phones". Or even better yet, being stranded with a phone that can't have the OS upgraded past what it is now? Lumia phones are cheap disposables, thy are built cheap, ans will crap the bed like the rest of the cheap junk usually does.
      Jumpin Jack Flash
      • Love My Nokia

        My Nokia Lumia 900 is holding up nicely. I have no complaints.

        Can't speak to their other models.
        ParrotHead_FL
    • Agreed.

      That's why some pro Android people here want WP7/Nokia gone, as then they don't have to feel bad that they're using third best smartphone.

      They claim that you can't upgrade the phone, which is bad, but then claim it's fine that their Android phone can't be upgraded, it's not an issue.

      As long as they keep making great quality hardware, I'll be interested. I wouldn't want to have to be stuck with crappy LG or HTC phones
      William Farrel
      • @ William "toddbottom3" Farrel

        "That's why some pro Android people here want WP7/Nokia gone, as then they don't have to feel bad that they're using third best smartphone."

        No they're laughing at [b]You[/b] because you're using the [b]Sixth best smartphone[/b]

        As long as they keep making great quality hardware, I'll be interested. I wouldn't want to have to be stuck with crappy LG or HTC phones"

        So you're admitting the Majority of WP7 phones are crappy? After all they're just old Android phones with WP 7 slapped on them.
        Jumpin Jack Flash
  • Nokia announces leadership changes, possible cuts of up to 10,000 jobs

    At least Nokia acknowledges that they need to do something so leadership changes makes a good start. Now if they could just get their phones on more carriers.
    Loverock Davidson-
  • Bell Toller Wanted - Inquire Within

    Anybody remember the last days of Carly Fiorina? Toward the end, she was firing Executive Vice Presidents right and left. "Off with [i]his[/i] head; it's all [i]his[/i] fault!" But eventually she ran out of Other Guys to blame for the woes. And then it was off with [i]her[/i] head.
    Robert Hahn
  • Nokia & Microsoft

    Seems Elop jumped from the burning Symbian platform on to the sinking ship, otherwise known as MicroTanic Mobile.

    This is very, very bad for MS mobile aspirations. Which mobile OEM will they have to buy next?
    Synthmeister
  • Microsoft Kiss of Death, again

    same happened to Palm, same to Silicon Graphics, same to Yahoo. Once they partnered with MS, they sinked. Too bad for Nokia, once a respected brand (before Elop).
    theo_durcan
  • Competition and Creative Distruction

    The competitive landscape changes (sometimes radically) and you either evolve or die. If it wasn't Elop it would have been some other outside CEO.Next. Nokia wasn't able to be competitive in the smartphone space with Symbian, and their competitors were all transitioning from internally built handsets to handsets built by outsourced providers in the far east (primarily China.) Nokia's labor cost structure and carrier / partner / channel model were based on the old structure and were no longer sustainable. Time for workforce / cost reductions, outsourcing most production, eliminating non-core or non-viable businesses, and reducing unsustainable overhead including Sr Mgmt that thrived in the old model but were unable or unwilling to change for the new.

    How is this different from Apple '92-03? They went thru multiple CEOs, lost market share, lost money, let workers go, outsourced manufacturing, cut a bunch of unprofitable product lines, and eventually focused on doing a few things very well under the guidance of Jobs. And without the $s and Office release commitment from Msft it is unlikely they would have survived. It gave them the runway, cash, and perception of viability to keep developers and customers in their camp.

    It won't be easy but Nokia can survive and thrive if they execute - time will tell.
    Wolf_Lodge