Nokia plans to cut up to 10,000 jobs by 2013, as part of a larger restructuring of the company. The news just appeared in a press release from the company today. Nokia had about 53,000 employees by the end of March this year.
“We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia,” said Stephen Elop, Nokia president and CEO. “We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services. However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions.”
Elop also said in the announcement that the job cuts are a consequence of the steps the company is forced to take to secure Nokia’s long-term competitiveness. As part of the restructuring, Nokia will close offices in Finland, Germany and Canada. Nokia also makes changes in their top management group.
“These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,” added Elop. “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.”
According to the press release, Nokia has plans to invest heavily in developing products and user experience that makes the company’s Lumia smart phones stand out from the competitors’ products, while their products will be available to even more users. Photo is one of the areas Nokia wants to differentiate itself on and Nokia announced today that it acquires the Swedish company Scalado, which makes advanced image processing technology.
Nokia will also be investing more in their location-based services as an area of competitive differentiation for Nokia products and extend its location-based platform to new industries. The company will also continue to focus on simple mobile phones, so-called “feature phones”, and to make this business more profitable than today. The luxury Vertu mobile brand will be sold to venture capital company EQT.
Nokia was not long ago by far Finland’s most valuable company, with a market value in 2007 at 110 billion euros. Today, the market value has fallen to 15.3 billion euros. Revenue in the first quarter totaled 7.4 billion euros, compared with 10.4 billion during the same period last year.
The full press release can be read here.