Nokia Corp. announced on Thursday that it plans to cut up to 10,000 jobs globally by the end of 2013 as part of its cost-cutting effort that will also reduce its device and services operating expenses.
The Finnish communications giant will in turn invest more of its resources in its feature phones, location-based services, and products and experiences that make its Lumia smartphones stand out and available to more consumers.
“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 Nokia’s President and CEO Stephen Elop. “However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions.”
The company is also planning to close its research and development centers in Ulm, Germany and Burnaby, Canada, as well as a handset factory in Salo, Finland, which would save 1.6 billion Euros.
“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.”
As of 2011, Nokia has about 124,800 employees across 120 countries, sales in more than 150 countries, and annual revenues of about 38 billion euros.
On the same day, Nokia announced a number of changes in its senior leadership, including the departures of Jerri DeVard, executive vice president and chief marketing officer; Mary McDowell, executive vice presient of mobile phones; and Niklas Savander, executive vice president of markets effective June 30.
Nokia has newly appointed Juha Putkiranta as executive vice president of operations, Timo Toikkanen as executive vice president of mobile phones, Chris Weber as executive vice president of sales and marketing, Tuula Rytila as senior vice president and chief marketing officer, and Susan Sheehan as senior vice president of communications.
Following the job cuts announcement, Nokia’s stock plummeted 14 percent as of 2 p.m. Thursday.
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