Nokia to make 4,000 redundancies

As part of its deal with Microsoft to work together on smartphones for the future, Nokia has announced that it intends to make 4,000 employees redundant by the end of 2012. This comes on top of its announcement that it is set to transfer 3,000 employees to Accenture, along with much of its Symbian business.

To deliver on its new strategy, Nokia today also announced plans to align its global workforce and consolidate site operations. These measures are part of Nokia’s target to reduce its Devices & Services non-IFRS operating expenses by Euro 1 billion for the full year 2013 in comparison to the full year 2010, as announced last week.

In addition, Nokia also plans to reduce its global workforce by about 4,000 employees by the end of 2012, with the majority of reductions in Denmark, Finland and the UK. In accordance with country-by-country legal requirements, discussions with employee representatives started today.

Nokia also plans to consolidate the company’s research and product development sites so that each site has a clear role and mission. Nokia expects the expansion of some sites and the contraction or closure of others.

All employees affected by the reduction plans can stay on the Nokia payroll through the end of 2011. Nokia expects personnel reductions to occur in phases until the end of 2012, linked to the roll-out of Nokia’s planned product and services portfolio. During this period, Nokia intends to ramp up its capacity for the development of Nokia smartphones based on the Windows Phone platform, the company’s broad range of mobile phones and its services portfolio.

“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. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia.”