Nokia Slashes 7000 Jobs To Cut Costs
Nokia reported this week that it will be letting go of a total of 7000 employees from offices all around the world to cut its operating costs. The most heavily affected is their Symbian team composed of 3,000 employees which will be heading over to outsourcing company Accenture.
The bulk of the layoffs will be coming from Denmark, Finland and the UK as the company tries to trim down their redundant staff.
Nokia which is based in Finland currently has 59,080 employees in its mobile division as of 2010. The recent lay-offs are the result of its smartphone business rapidly declining and losing market share to newcomers such as Google’s Android and Apple’s iOS. The company’s late reaction to embrace newer technologies and being hardware specific instead of concentrating on their software has resulted into its loss of share.
One of the main reasons people don’t choose Nokia smartphones despite their excellent hardware is the use of the Symbian platform. In an age where touchscreen models rule, Symbian is clearly not suited for touch operation.
The good news is that Nokia has formally partnered with Microsoft to use the WP& in their smartphones. Hopefully when the first Nokia WP7 models get released next year the company will rebound back.