Nokia confirms layoffs, pulls back sales channels in China

Nokia confirms layoffs, pulls back sales channels in China

Summary: Finnish mobile giant merges existing four sales regions into two larger areas in China.

TOPICS: Nokia, Smartphones, China

According to Sina Tech report on Thursday, Nokia confirmed it will shed employees in China but did not elaborate on the details.

The Finnish company in June announced plans to slash 10,000 jobs worldwide by the end of 2013. China, which was one of Nokia's key markets in the world, was not spared this time.

The handset maker will also squeeze the current four big sales regions into two sales areas in China, namely the North and South sales regions, after its sales in the country dipped 18 percent to US$6.7 billion in 2011 compared with a 23 percent rise in 2010.

Sales divisions in Chengdu and Shanghai, which were in charge of mobile phone sales in the western and eastern part of China, will be merged into the northern and southern divisions located in Guangzhou and Beijing, said the company.

Sales chief in the previous west and east regions will be assigned to other appointments.

Earlier reports on Thursday said Nokia China will lay off 300 of 500 employees with a permanent contract, primarily in sales and marketing department. The company, however, said the number was "not accurate".  

Topics: Nokia, Smartphones, China

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  • Elop's management

    What do Finnish readers think about Elop's handling of Nokia crisis?
    Van Der
  • Van Der
  • Fewer sales, fewer salesmen

    China Mobile, the largest carrier in the world with almost as many subscribers as there are people in Europe, was part of the MeeGo consortium that Nokia decided they didn't need anymore. China Mobile and Nokia were 'best buds' back in the day, and together they were working on MeeGo phones.

    We all know what happened there.

    China Mobile has since moved on -- they mostly sell Samsung and Apple phones these days -- so Nokia doesn't need so many people in China. Think of all the money Elop has saved Nokia shareholders by consolidating sales regions.
    Robert Hahn