Big changes are in store for Nokia, the struggling handset maker that's decided to take some drastic steps in an attempt to return the Finnish company to profitable growth. Nokia is focused on "significantly" reducing its operating expenses, and it starts with the elimination of 10,000 jobs around the globe by 2013, a process that's already begun in earnest by engaging with employee representatives.
"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," said Stephen Elop, Nokia president and CEO. "We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities."
It's not just employees getting the axe. Nokia plans to reduce its factory footprint by closing facilities in Ulm, Germany and Burnaby, Canada, scale down certain research and development projects, and make reductions to non-core assets, including possible divestments.
While changes abound on the horizon, Nokia lowered its second quarter outlook, the third time it's down so in barely more than a year. News of the shakeup and revised outlook sent Nokia's stock into a landslide, which is down by around 13 percent.