Nokia issued its 2013 second quarter earnings report on Thursday, July 18th, which not only showed the declining income and overall sales of its mobile phone sector but also revealed that the Finnish mobile maker is going to cut 440 jobs from its mobile phone division. This is not the first time that Nokia has gotten job cuts and the Finland-based company has let go of employees continuously for the last couple of years. When a spokesperson for the company was contacted to elaborate on the cut of jobs mentioned in the second quarter earnings report, he responded by saying the the company is “certain” the restructuring will “ impact a maximum of 440 positions globally,” but may in fact be “much smaller than 440.”
The spokesperson also said that, “The planning is starting today. That means the consultations with the 440 employees who may be affected are getting underway as per the normal practice. So the exact net impact is not yet known, but what is certain is that the total number of job losses will be much smaller than 440.”
On the other hand, a Finnish newspaper reported that about 160 jobs that are expected to be impacted with this announcement are in Nokia’s home land. Overall, Nokia Group has 92,874 workers and of these employees over 55,000 are working in the Nokia Siemens Networks division alone. Nokia other divisions including the smartphone division, has slightly less than 31,400 employees.
The job cut statement was first indicated by blogger Stefan Constantine, who is of the opinion that the purpose of this latest reorganizing is to get rid of legacy services so Nokia could “deliver more innovation”:
“Nokia continuously works to improve the efficiency of its operations and its long-term competitive investments. In order to respond to industry dynamics, Nokia’s Mobile Phones business unit is planning to focus its product offering with the aim of improving product competitiveness and delivering more innovation. The planned restructure is estimated to impact a maximum of 440 positions globally, while also creating a number of new positions and offering possibilities for redeployment.”
If Nokia cuts full 440 employees then it will be the biggest number of jobs that the company will cut in its history, as previously Finland-based company has slashed 300 employees and outsourced 820 at the start of this year.
Source: Techcrunch
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