After experiencing a series of losses in its operations, Finland-based Nokia is finally confirming its plan of trimming its workforce by shedding off up to 10,000 jobs before the current year ends. This is the “sharpening strategy” management plans to undertake that involves re-focusing its energy towards the development of Lumia smartphones, mapping services and the competitiveness of its featured products.
The plan involves the closure of its manufacturing plant in Finland and the Research and Development units located in Germany and Canada along with the employees working in those areas. Nokia’s president and CEO Stephen Elop emphasized the importance of corporate re-structuring to save the company from further financial collapse through innovation and process improvement of its current flagship product Lumia smartphones.
Four months earlier, Nokia had announced the cutting of 4,000 jobs affecting its global operations and touted the possible shifting of assembly operations to Asia. Three executives have been laid off affecting the positions of vice presidents for Mobile Phones and Markets and the chief marketing officer, which were filled with a new replacement together with the appointment of new personalities.
The company’s luxury brand Vertu was also sold to EQT VI with Nokia retaining only 10% of the company’s shares. In addition, Nokia acquired certain rights of Scalado, a mobile imaging company,