Nokia to reduce worldwide workforce by 4,000

[News_Editor]

Nokia to reduce worldwide workforce by 4,000

2011-04-27 23:31:04 GMT+7 (ICT)

ESPOO, FINLAND (BNO NEWS) -- Nokia on Wednesday announced that the company will reduce its worldwide workforce by 4,000 as part of a strategy to reduce operating expenses.

The mobile phone manufacturer will also transfer about 3,000 employees to Accenture, as part of a strategic collaboration that would result in the transfer of Nokia's Symbian software activities.

With these actions, Nokia expects to reach its target of reducing its Devices and Services non-IFRS operating expenses by 1 billion Euros ($1.46 billion) by the end of 2013.

"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. "However, with this new focus, we also will face reductions in our workforce."

The workforce reduction of about 4,000 Nokia employees will mostly take place in Denmark, Finland and the United Kingdom. On Wednesday, the mobile phone maker began discussions with employee representatives in accordance with each country's legal requirements.

All employees affected by the reduction plans will be allowed to stay on the Nokia payroll through the end of 2011. The workforce will be gradually reduced in phases thorough 2012.

"We are offering those who are losing their jobs a range of options, from individual re-employment support and re-training to making investments to promote innovation and working with a variety of partners to create new opportunities," added CEO Elop.

Nokia and Accenture also unveiled its plans to transfer Symbian software activities to provide future smart phone ecosystem services to the mobile phone manufacturer. The collaboration is subject to final agreement which is expected to be completed by summer 2011.

Around 3,000 Nokia employees from China, Finland, India, United Kingdom and the United States will be transferred to Accenture by the end of 2011. Accenture and Nokia have been working together since 1994.

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