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Dublin: 10 °C Sunday 19 May, 2013

Nokia to cut 10,000 jobs worldwide

The struggling mobile phone company has also warned of a larger than expected loss for the second quarter of this year.

Image: Ian Nicholson/PA Archive/Press Association Images

STRUGGLING MOBILE PHONE maker Nokia is to cut its workforce by around 10,000 people before the end of 2013 in an effort to turn the company’s finances around.

In an announcement this morning, the Finnish company also announced the departure of three of its top executives and warned of a larger than expected loss for the second quarter of this year.

The company has an office in Dublin but it is not yet known if jobs in Ireland will be affected. Facilities in Germany, Canada and Finland are all to be closed as part of the cuts across the company.

The company’s chief executive Stephen Elop said the job losses are a “difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength”.

The company plans to cut costs by around €1.6 billion by the end of 2013.

The move comes after Nokia suffered a huge €929 million net loss in the first three months of this year as sales plunged, especially in the smartphone market.

The company has been fighting stiff competition from the likes of the iPhone and Android phones which have dominated the smartphone market. Bloomberg reports that Nokia has lost more than €70 billion in market value since Apple introduced the iPhone in 2007.

Uh-oh: Nokia posts €900 million loss in just three months >

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Comments (16 Comments)

  • Nokia laughed at Steve jobs when he announced the first iPhone ??

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  • Unfortunately it’s game over for Nokia in the market. They’ll never get back to where they were. Windows phone will never be as popular as ios or android. Symbian is clunky by comparison. Even if they were to switch to android & aggressively target the smartphone market, they’d be playing catchup for a good two years.

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    • I disagree,

      Windows Phone 8 is about to drop which will bring a change in the underlying core to match that of Windows 8. Once this is done you are going to have a platform like no other on the market as your PC, Tablet, Phone and possible console will all be the same underneath one thing that people forget is that behind Nokia is Microsoft.

      While it may be cool to bash Microsoft people forget that they still have a ridiculous amount of money and can afford to prop or buy Nokia. Microsoft are not stupid and their one major weakness against Apple is that they do not control the hardware, which Apple use to an extremely effective advantage.

      My prediction is you will see Nokia being purchased by Microsoft and used as the hardware arm for Tablets and Phones. I also predict a much larger market share for Windows Phone, but not until after the release of Windows Phone 8 which will have much better platform features including better cloud syncing (even though its cloud integration is already miles ahead) and better platform services like unlimited music for a fixed fee per month. Essentially we are going to see the same change we did from the XBox to the XBox360

      As for people claiming Apple, Google, or Microsoft will win hands down. Remember it is competition that drives innovation. None of these companies innovate in the space were they are the market leader. The best outcome would be all 3 platforms do well (and hopefully we see more).

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    • @dean: that depends on the licensing costs… it seems now that an OEM will have to pay around $85 for licensing Windows RT. That will push the cost higher than competing Apple/Android devices…

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    • Dean, also I completely agree with your last paragraph.

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  • dear Nokia, stick to what you’re good at. reliable feature phones. big screens and accessible buttons. keep it simple stupid…

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  • Recently watched a movie that makes it difficult for me to mourn the loss of a company like Nokia. The job losses are collateral damage in a company that is concerned only with profits, as can be seen in the exploitation of children in The Democratic Republic of Congo. Imagine entering a mine as a child answer staying down there for over 1 week at a time simply because it is too far to travel each day. Your job is to hammer out precious minerals for use in mobile phones and other technology. Im not nieve to think my handheld device is free from any human exploitation but I know i choose a company that at least tries to make a difference, unlike Nokia.
    http://bloodinthemobile.org/

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  • It’s a classic case of a company not moving with the times. Nokia should have dumped Symbian a long time ago and embraced Android. Nobody can deny that Nokia make great hardware – Symbian is what held them back. Their change to Windows Phone is too little too late. If they had taken Android on board a few years ago they could easily be where Samsung are in the market right now.

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  • Are they going to text or call the employees? – Seriously though they should stick to what they know and they might still be selling products. Instead of creating families who will now have to find a new way of bringing food to the table.

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