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Nokia to layoff 7,000 as it re-align
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Monday, May 9, 2011
Nokia has announced plans to layoff or transfer about 7000 employees as it looks to lower expenses and realign business activities.
The move will see the Finland-based company reduce its global workforce by about 4000 jobs by the end of 2012, while also transferring about 3000 employees to Accenture as part of a deal that sees Nokia's Symbian software activities move to the company.
Nokia said the majority of the layoffs will be in Denmark, Finland, and the UK. Nokia also noted plans to consolidate the company's research and product development sites, expanding some sites and contracting or closing others. Nokia did not offer further details, including locations, on that plan.
The changes come just weeks after Nokia announced it would adopt Windows Phone as its primary smartphone strategy. That decision effectively ended the company's work on Symbian and also put into question employee retention, which spurred a walkout by staff.
Nokia said today that all employees affected by the reduction plans can stay on the payroll through the end of 2011. Nokia expects personnel reductions to occur in phases until the end of 2012, linked to the roll-out of its planned product and services portfolio. During this period, Nokia intends to ramp up its capacity for the development of Nokia smartphones based on the Windows Phone platform, the company's range of mobile phones, and its services portfolio.
"At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones, and future disruptions," said Stephen Elop, Nokia president and CEO, in a statement. "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."
As to the Accenture transition, the collaboration calls for Accenture to provide Symbian-based software development and support services to Nokia. The companies expect completion of a final agreement during summer 2011, and expect the transition of employees by the end of 2011.
Transitioning employees -- located in China, Finland, India, the UK, and the United States -- will initially work on Symbian software activities for Nokia. Over time, Accenture and Nokia will seek opportunities to retrain and redeploy transitioned employees.
This collaboration also includes plans for Accenture to provide mobility software, business, and operational services around the Windows Phone platform to Nokia and other ecosystem participants. Under the proposed agreement, Accenture would become a preferred partner for Nokia's smartphone development activities, as well as a preferred provider of services.
"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 at Nokia, in a statement. "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."
Accenture and Nokia have been working together since 1994. In October 2009, Accenture acquired Nokia's professional services unit that provides engineering and support of the Symbian operating system to mobile device manufacturers and service providers, and which then served as a key building block in Accenture's mobility services portfolio.
By: DocMemory
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