Nokia to Cut 330 Jobs in Finland, Denmark

Nov. 20, 2009
Company is streamlining its research and development operations

Nokia, the world's biggest mobile phone maker, said on Nov. 20 it would shed about 330 jobs in Finland and Denmark as part of a streamlining of its vast research and development operations.

"The planned changes are expected to affect up to 230 employees at Nokia's Oulu site in Finland and approximately 100 employees at Nokia's Copenhagen site," the firm said. The company currently has 17,000 employees in research and development, of which more than 2,000 in Oulu and more than 1,000 in the Danish capital.

Nokia said it would try to find new positions within the company for the impacted employees and could offer voluntary redundancy packages for some.

The mobile phone giant launched a cost-cutting program last January, after its earnings fell as consumers cut back on buying handsets amid the global financial crisis. The program aims to generate more than 700 million euros (US$1 billion) in annual savings.

Before Nov. 20, Nokia had announced about 3,700 job reductions since January, including around 1,300 voluntary redundancy packages.

Last month Nokia posted a surprise swing into red when it reported a third-quarter net loss of 559 million euros amid rising competition in the smartphone market and problems with its Nokia Siemens Networks joint venture. The next day, it named Timo Ihamuotila as its chief financial officer, in replacement of Rick Simonson.

Earlier this month, Nokia Siemens Networks announced it would cut between 4,500 and 5,800 jobs by 2011 to boost profitability.

Copyright Agence France-Presse, 2009

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2024. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!