Nokia to shed more than 1,000 jobs in Finland363 views
HELSINKI: Mobile phone giant Nokia is to cut more than 1,000 jobs in Finland, the company announced Friday, as part of cost-cutting measures following its merger with Alcatel-Lucent.
Once the world’s top mobile phone maker, Finland’s Nokia has been crushed by Samsung and Apple in the smartphone and tablet market in recent years, but earlier this month said it was retuning to the fiercly competitive field.
Nokia last month said it expected some 1,300 jobs to go in Finland, but the number announced in a statement on Friday was slightly lower, at 1,032.
The company is targeting 900 million euros ($1 billion) of savings per year starting in 2018 and further redundancies are expected around the world.
In its first earnings announcement since the deal with French-American rival Alcatel-Lucent, Nokia reported a first quarter net loss of 513 million euros ($583 million) earlier this month.
Nokia Corporation is a Finnishmultinational communications and information technology company, founded in 1865. Nokia is headquartered inEspoo, Uusimaa, in the greater Helsinki metropolitan area. In 2014, Nokia employed 61,656 people across 120 countries, conducts sales in more than 150 countries and reported annual revenues of around €12.73 billion. Nokia is a public limited-liability company listed on the Helsinki Stock Exchange and New York Stock Exchange. It is the world’s 274th-largest company measured by 2013 revenues according to the Fortune Global 500. The company is a component of the Euro Stoxx 50 stock market index.
The company has had various industries in its 150-year history, originally founded as a pulp mill, and currently focuses on large-scale telecommunications infrastructures, and technology development and licensing. Nokia is also a major contributor to the mobile telephony industry, having assisted in development of the GSM and LTEstandards, and was, for a period, the largest vendor of mobile phones in the world. Nokia’s dominance also extended into the smartphone industry through its Symbian platform, but was soon overshadowed by competitors. Nokia eventually entered into a pact with Microsoft in 2011 to exclusively use its Windows Phone platform on future smartphones. Its mobile phone business was eventually bought by Microsoft in an overall deal totaling €5.44 billion (US $7.17 billion). Stephen Elop, Nokia’s former CEO, and several other executives joined the new Microsoft Mobile subsidiary of Microsoft as part of the deal, which was completed on April 25, 2014.
Since the sale of its mobile phone business, Nokia began to focus more extensively on its telecommunications infrastructure business, marked by the divestiture of its Here Maps division, its foray in virtual reality, and the acquisitions of French telecommunications company Alcatel-Lucent and digital health maker Withings in 2016.