Print 30 comment(s) - last by cjohnson2136.. on Apr 29 at 2:54 PM

Company to shed 7,000 jobs by 2013

Can't say we didn't see it coming. You could point to former Microsoft Executive Stephen Elop's appointment as Nokia's new CEO in September as the beginning of a major transition for the Finnish mobile manufacturer, but things had been in disarray for the struggling company for long before then. The blockbuster strategic partnership with Microsoft to provide Windows Phone 7 software on Nokia devices has been labeled by some as a Hail Mary pass for the company, with major implications for Symbian and its employees. And while we won't know what kind of effect all the changes will have on Nokia's bottom line, we're starting to see some major changes to its workforce.

Today, Nokia announced another "strategic collaboration" -- this time with the technology services and outsourcing company Accenture. The deal would outsource Nokia's Symbian activities to Accenture, including the 3,000 employees who work on it. In addition, Accenture would provide "mobility software services" to Nokia on its future smartphones.

"This collaboration demonstrates our ongoing commitment to enhance our Symbian offering and serve our smartphone customers," said Jo Harlow, executive vice president for Smart Devices for Nokia said in a press release. "As we move our primary smartphone platform to Windows Phone, this transition of skilled talent to Accenture shows our commitment to provide our Symbian employees with potential new career opportunities."

This won't be the first time that the two companies worked together. They've been involved with one another, on some level, since 1994. Their partnership ramped up in October 2009, though, when Accenture acquired Nokia's professional services unit that provided support of Symbian to mobile manufacturers and other service providers. 

And while the 3,000 employees moving to Accenture will continue to work, another 4,000 employees will suffer a less rosy fate. In another announcement today, Nokia unveiled plans to begin consolidating its site operations to reduce operating expenses in Devices & Services by 1 billion euros (nearly $1.5B) for 2013 compared to 2010. This plan includes reducing Nokia's global workforce by around 4,000 employees by the end of next year. Most of the employee losses will occur in Denmark, Finland, and the U.K.

The personnel reductions will occur in phases through 2012, during which time Nokia will work on ramping up its Windows Phone 7 portfolio. According to the release, all employees affected by the layoffs will be allowed to stay on Nokia's payroll through the end of this year. Discussion with employee representatives has already begun, as mandated by country-by-country legal requirements.

"At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions," Elop said in the press release. "However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia," adding that Nokia would be offering affected employees retraining and re-employment support.

In addition to the layoffs, Nokia will also be consolidating its research and product development sites. With clearly defined missions, some sites will expand, while many will face closure and downsizing.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

By Pessimism on 4/27/2011 1:47:48 PM , Rating: 2
I find it suprising that noone has picked up on where they say it took THREE THOUSAND PEOPLE to write the obsolete garbage that is Symbian...

RE: Wow
By bah12 on 4/27/2011 2:06:33 PM , Rating: 3
7,000. Remember the other 4,000 are getting canned, so it actually takes 3,000 to maintain the obsolete garbage that is symbian.

RE: Wow
By Mitch101 on 4/27/2011 4:46:38 PM , Rating: 2
Hearing that alone made me think Nokia did the right thing. How much does Nokia stand to make just on not needing to pay that many people on a dying OS?

RE: Wow
By snakeInTheGrass on 4/28/2011 11:02:15 AM , Rating: 2
The question is how much less they stand to lose over time. Cutting costs != increasing revenues in any case, and their challenge is going to be to move their customers from one dying OS to a unpopular one. Not something that will let them charge huge premiums for fat margins.

It's funny that HP is looking at the market doing exactly the opposite, setting up a full vertical integration like Apple has instead of removing its ability to produce the software for the hardware. Then again, seeing the huge margins Apple has vs. Android & Windows devices, that is probably not a bad plan if they can pull it off. And I certainly don't mean to suggest that Nokia was going to pull off a successful vertical stack on Symbian at this point or that they should have kept Symbian - they bungled their strategy and execution some time back. Now maybe they should have bought Palm, but that's a bit late now

RE: Wow
By messyunkempt on 4/28/2011 3:31:29 AM , Rating: 2
I was thinking the same thing, i've only ever owned one symbian phone (the sony satio) and it literally crashed on a daily basis. The fact that it took so many people to write and maintain it is ridiculous.

RE: Wow
By cjohnson2136 on 4/29/2011 2:54:37 PM , Rating: 2
You have to keep in mind not all these employees are developers. You also have managers, BI people, probably QA, To me it sounds like they are getting rid of everyone dealing with Symbian not just the developers. Also even a crappy phone OS i would expect a few hundred people because after having my OS class it is not something I would want to create with a few people.

"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone
Related Articles

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Laptop or Tablet - Which Do You Prefer?
September 20, 2016, 6:32 AM
Update: Samsung Exchange Program Now in Progress
September 20, 2016, 5:30 AM
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki