Nokia Sharpens Axe, Readies 7,000 Job Cuts

Paul Lilly

Now's not a particularly good time to be working for Nokia, not unless you can handle the stress of wondering if you'll still have a job once the company eliminates 12 percent of its workers. As part of a new strategy to "align its global workforce and consolidate site operations," Nokia said it plans to hand out about 7,000 pink slips, including laying off 3,000 staff and transferring 3,000 more to Accenture, which will take over Nokia's legacy Symbian software division.

"At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones, and future disruptions," said Stephen Elop , Nokia President and CEO. "However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia."

The job cuts come as Nokia looks to shave expenses by 1 billion euros (around $1.47 billion USD) for the full year 2013 compared to the full year 2010, Nokia said. They're also in preparation for Nokia's partnership with Microsoft, as the company winds down its Symbian strategy and migrates future smartphones over to Windows Phone 7.

"This is about keeping focus with Nokia on Windows Phone. It helps to get rid of any doubts on where this company is going," Reuters quotes Gartner analyst Caronlina Milanesi as saying. "For Accenture this opens up opportunities in mobile application development."

Nokia said the job cuts will be completed by the end of 2012.

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