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Nokia confirms 1000 redundancies at Finnish plant

Nokia confirms 1000 redundancies at Finnish plant

Fri 23 Mar 2012 11:32am GMT / 7:32am EDT / 4:32am PDT
Business

Layoffs will be gradual, all jobs to be gone by June this year

Nokia has finalised plans to make 1000 employees redundant, Reuters reports.

The jobs will be cut from the workforce in its manufacturing plant in Salo, Finland. The process will be gradual, but all 1000 jobs are expected to be gone by June this year.

Nokia's last few years have been tumultuous due to fierce competition from companies like Apple and Google. In June 2011, Nokia's stock plummeted to its lowest price in 13 years, thanks in no small part to the company's decision to persevere with its Symbian OS despite the huge popularity of iOS and Android.

However, its current CEO, Steven Elop - who replaced Olli-Pekka Kallasvuo in September 2010 - is attempting to restructure the company to ensure its survival. In a leaked internal memo, Elop railed at Nokia's internal culture for allowing the once dominant company to fall so far behind its competitors.

"How did we get to this point? Why did we fall behind when the world around us evolved," he asked.

"I believe at least some of it has been due to our attitude inside Nokia. We poured gasoline on our own burning platform. I believe we have lacked accountability and leadership to align and direct the company through these disruptive times.

We had a series of misses. We haven't been delivering innovation fast enough. We're not collaborating internally. Nokia, our platform is burning."

A key factor in the company's potential turnaround is its alliance with Microsoft, forged in February last year, that brought the Windows Phone OS, Bing search engine and adCenter to Nokia handsets.

3 Comments

Paul Shirley
Programmers

165 131 0.8
Rhe rest of the world thinks the calamitous crash in its stock coincided with killing Meego and downgrading Symbian to featurephones only in favour of Microsoft+WP7, not sticking with it!

Shutting down it's factory's has more to do with subcontracting out the manufacture of phones to the far east. When the buying public realise that, their reputation for high quality hardware will be hard to maintain.

Sad that a company could mismanage itself to the point it needed to partner with a wolf like Microsoft (an ever bigger piece of mismanagement).

Edited 1 times. Last edit by Paul Shirley on 23rd March 2012 3:29pm

Posted:2 years ago

#1

Private
Industry

1,187 185 0.2
Nokia completely missed the rise of smartphone market. Before the smartphones 90% of people I knew had Nokia, but now 1 person I know has one and he got it because of the camera. Their smartphones where not the best and Symbian was slow, not many apps and just not that great. They should have changed to Android years ago.

Good luck to the people who have to go.

Edited 1 times. Last edit by Private on 23rd March 2012 8:36pm

Posted:2 years ago

#2

Martyn Brown
Managing Director

137 33 0.2
The danger of complacency, right there, mixed with a little arrogance due to an overwhelming market position mid 2000s. Very sad for those going, but this had been on the cards - but how many times have companies appeared in unassailable positions only for them to push the self-destruct button?

Posted:2 years ago

#3

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