Nokia to Cut 10,000 Positions by 2013, Lowers Outlook for Q3
Nokia has just announced that as part of the company's plan to restructure itself, it plans to cut 10,000 positions by the end of 2013. This bulk of this 10,000 positions will come from the closure of its facilities in Germany and Canada along with reductions in its Devices & Services division. That aside, the company will also focus on streamlining its IT, corporate, support and manufacturing functions.
Apart from this, the company has also made a couple of key changes to its senior management:
Nokia has appointed Juha Putkiranta as executive vice president of Operations; Timo Toikkanen as executive vice president of Mobile Phones; Chris Weber as executive vice president of Sales and Marketing; Tuula Rytila as senior vice president of Marketing and Chief Marketing Officer; and Susan Sheehan as senior vice president of Communications. Weber, Putkiranta, and Toikkanen will join the Nokia Leadership Team on July 1st, 2012. Jerri DeVard, Mary McDowell, and Niklas Savander will all step down from the Leadership Team effective June 30th, 2012. All three will continue in advisory roles while they transition their roles.
Lastly, the company also lowered its outlook for the third quarter of this year, citing "competitive industry dynamics" to a "greater extent than previously expected."
To end, CEO Stephen Elop has this to say:
"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength. We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities."
Source: The Verge