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Saturday, 30 April 2011

Nokia 7,000 jobs in cost-cutting move cut

BERLIN - Nokia, the world's leading mobile phone maker, said on Wednesday that it around would 7,000 jobs in the context of a cost-cutting program, the deeper eliminate the as was expected.

The 12 percent decline in the global labour force of the Finnish company helps trim operating costs by 1 billion that 5,000 to 6,000 would be deleted € or $1.47 billion, a 17 percent reduction until end 2012. analysts had expected.

Stephen Elop, former Microsoft Executive who was in September, Nokia's Chief Executive said that the cuts and reorganization were needed for the preparation of the partnership with Microsoft. Nokia plans to finally end the Symbian operating system as rolls it out to smartphones next year in a row from the Microsoft Windows phone software.

Mr. Elop said "with this new focus, we also face reductions in our workforce,". "This is a difficult reality, and we work closely with our employees and partners to identify long-term re-employment programs."

In a statement Nokia, reducing said a the 4,000 jobs, especially in the UK, Denmark and Finland, and through the transfer of 3,000 employees responsible due to the loss for your Symbian operating system, Accenture, global technical advisor for the company would be achieved.

The company, which has its seat, in Espoo, Finland 59,080 in his business cellphone end of 2010. The figure includes employees from Nokia Siemens Networks, network joint venture, and with the NAVTEQ, a U.S. mapping undertaking it has data.

Nokia produces 108.5 million cell phones last year 32 percent of the world market, but this year the company leadership assigned when the cellphone revenue to Apple, the maker of the iPhone, according to Strategy Analytics, a research firm.

In addition to the loss of jobs, the official after negotiations with representatives of labor be, Nokia said it planned to consolidate Division research and development, so that each site had a unique role and mission. Nokia has mobile phone R. & D. in Finland, China, India, Germany, England, Denmark and San Diego.

Some sites will grow, be other contract and some will be closed as a result of the reorganization, Nokia said without more information.

"This move was largely expected and follows Nokia's need to reduce their cost structure", Michael Schroder said Bank, a private bank in Helsinki, analyst at FIM.

Nokia's error capitalisation of the Smartphone boom has the Finnish company market share and prestige is the focus of its sector of hardware and communication software and applications has shifted.

Ericsson, the global leader in the wireless network equipment, said on Wednesday that the boom is still strong, as reported that the demand for mobile broadband sales 17 percent in the first quarter in 53 billion Swedish kronor a year earlier lifted, or $8.7 billion.

Profit at Ericsson, based in Stockholm, more than tripled to 4.1 billion crowns of 1.3 billion kroner a year earlier, the company who attributed costs to lower and more profitability in the networks Division.

Most of the demand from the United States and Canada came, Ericsson said where expand wireless operators such as Verizon Wireless, AT & T and Rogers Communications the capacity of their 3 g networks, and install new and faster networks based on a technology long-term evolution called, handle increasing traffic.

Ericsson cancelled doubled 2010 the level of traffic in the world global mobile networks 2009 and would doubled continue annually for the next few years.

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