HELSINKI: Nokia, the world’s leading mobile phone maker, said Tuesday it planned to cut some 450 jobs globally as it reorganises its services unit. In addition, Nokia plans to streamline its corporate development office, including internal information technology (IT) and industry collaboration activities. “Altogether, approximately 450 employees globally will be impacted by the plans announced today, of which a maximum of 100 in Finland, the company said in a statement.
It added it would continue to seek savings across the company, which had 124,000 employees at the end of March, or 64,000 excluding its Nokia Siemens Networks joint venture. The job cuts “will impact mainly employees in Europe and North America, but it is too early to be more precise,” Nokia’s spokeswoman Eija-Riitta Huovinen told AFP.
Nokia’s services unit develops Internet based services to mobile phone users, including map services and games. The unit currently employs some 3,200 people. The head of Nokia services, Niklas Savander, said Nokia would increasingly offer to its customers new services developed by its partners and other companies. Prior to Tuesday’s announcement, Nokia had announced more than 3,000 job cuts since January as part of a vast cost-cutting plan, including 1,000 voluntary departure packages. The Finnish firm launched the programme last January, aimed at creating more than 700 million euros (910 million dollars) in annual savings.
Earlier this month Nokia reported a 90-percent drop in its first-quarter net profit to 122 million euros. Its earnings were dented by fewer consumers buying cheaper mobile phones amid global financial crisis. afp
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