Nokia Shakes Up Executive Ranks, Will Eliminate 10,000 Jobs by the End of 2013
June 14, 2012 3:17 AM
comment(s) - last by
(Source: Paramount Pictures)
All is not well in Nokia Land
Nokia seems to be
riding high in the U.S. with its Lumia 900 smartphone
that runs Microsoft's Windows Phone 7.5 operating system. The company is seeing high demand for its flagship smartphone on AT&T's wireless network and is reportedly in talks with Verizon to expand its market presence in the U.S.
all is not well with Nokia globally
. The company's overall smartphone market share has plunged worldwide
with the most recent figures from IDC
showing that Nokia had just 8.2 percent global smartphone market share for Q1 2012 compared to 24.7% and 29.1% for Apple and Samsung respectively.
Nokia Lumia 900
As a result of its precarious place in the worldwide phone market, Nokia is looking to make some drastic changes to put out the flames on this burning ship. Today, Nokia announced a plan of action that centers around three key goals:
Invest strongly in products and experiences that make Lumia smartphones stand out and available to more consumers;
Invest in location-based services as an area of competitive differentiation for Nokia products and extend its location-based platform to new industries; and
Improve the competitiveness and profitability of its feature phone business.
In an effort to follow through this plan, Nokia looking to its
Lumia brand of smartphones
to showcase its innovative side and reclaim market share back from industry heavyweights like Samsung and Apple. "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," said Stephen Elop, Nokia president and CEO. "However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions."
Nokia CEO Stephen Elop
Nokia is also shaking up its executive team. Effective July 1, 2012, Juha Putkiranta will become executive vice president of Operations; Timo Toikkanen will take over as executive vice president of Mobile Phones; Chris Weber will service as executive vice president of Sales and Marketing; Tuula Rytila will claim a position as senior vice president of Marketing and Chief Marketing Officer; and Susan Sheehan assume the role as senior vice president of Communications.
Executives on the way out the door effective June 30, 2012 include Jerri Devard (chief marketing officer), Mary McDowell (executive vice president of Mobile Phones), and Niklas Savander (executive vice president of Markets).
Perhaps the most drastic change, however, is Nokia's decision to eliminate 10,000 employees worldwide by the end of 2013. These job losses will come as a result of the closure of Nokia facilities in Finland, Germany, and Canada along with the streamlining of its corporate, IT, and support functions.
"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."
This article is over a month old, voting and posting comments is disabled
RE: Big mistake
6/14/2012 12:25:46 PM
Nokia was a sinking ship already and needed a hail mary and a quick win. Their OS was not going to be viable in the long run and they could read the writing on the wall when many of the Symbian partners (Samsung, Sony, LG) withdrew and switched to Android. Given the situation, I don't think they had a lot of choices.
As they had dedicated their resources into their own OS, they had to re-design their devices around a platform they didn't have experience with. I'm 100% positive they would've approached Google first because of the marketshare.
Unfortunately, Google is well known for not providing much support beyond providing the core OS which is why each vendor, along with each carrier is responsible for their own customization and updates. Had Nokia went with Google, they'd be engineering it themselves, at their own cost, and probably still be working on releasing their first Android phone to the market.
On the other hand, Microsoft will throw money and bodies at you to get what you want if they can see a good ROI from it. Which is exactly what they did. Nokia needed a cash infusion to re-platform and they got it from Microsoft (likely thanks to Elop's relationship with Microsoft).
I have my doubts whether Nokia will succeed. I think like RIM, they clung onto something that was had became out of step with the market for much longer than they should've. WP is their hail mary - however it may have been too late for them.
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
Seton Hall University Offers Lumia 900s to Give "Freshmen Experience"
June 12, 2012, 1:00 PM
Nokia Can't Keep Up With Cyan Lumia 900 Demand, In Talks With Verizon
May 11, 2012, 1:47 PM
IDC: Apple and Samsung Steadily Climb as Nokia, HTC, and RIM Plummet
May 1, 2012, 2:53 PM
Nokia Bleeds Even More Sales Than Expected, Sales VP is Booted
April 19, 2012, 7:18 PM
Finished Apple Watch Expected to be Showcased at"Spring Forward" Mar. 9 Event
February 26, 2015, 12:17 PM
Google Preps Pixel 2 ChromeBook, New X Server Replacement "Freon"
February 24, 2015, 11:12 PM
Report: Samsung Semiconductor Bounces Back w/ iPhone SoC and Memory Orders
February 24, 2015, 1:40 PM
Comcast Borrows Apple's Branding Flourishes for Its Remotes
February 24, 2015, 11:32 AM
NVIDIA Bows to Outraged Overclockers, Will Restore Feature in Upcoming Driver
February 23, 2015, 12:30 PM
BlackBerry Wages Legal War Against Ryan Seacrest's Typo 2 iPhone Keyboard
February 18, 2015, 5:24 PM
Most Popular Articles
Google Steps up Snub of Adobe Flash, Auto-Converting Flash Ads to HTML5
February 25, 2015, 6:16 PM
HTC's Sense UI is Garbage: A Tale of Disappearing Keyboards and Desperate Fixes
February 24, 2015, 11:00 AM
StarDock Unveils Start10 Start Menu Replacement for Windows 10
February 25, 2015, 11:24 AM
FCC Bans Data Discrimination, Defies Comcast, Adopting Net Neutrality Regulation
February 26, 2015, 4:03 PM
Cool Nature Video: Crazy Coconut Octopus Braves Dry Land to Capture Crab
February 24, 2015, 4:18 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information