Nokia slashes IT workforce

Finnish handset firm Nokia has announced plans to cut its global IT workforce by 300 employees. The firm will also transfer part of its IT activities and up to 820 employees to Indian outsourcing firms HCL Technologies and Tata Consultancy Services.

The announcement marks the last anticipated reductions as part of Nokia’s focused strategy announcement of June 2012. The firm had pledged to cut 10,000 jobs by the end of 2013 as it adjust to its decline in the smartphone market. Nokia said that the changes will increase operational efficiency and reduce operating costs, “creating an IT organisation appropriate for Nokia’s current size and scope”.

The majority of the employees affected by these planned changes are based in Finland. Nokia added that it will offer employees affected by the planned reductions both financial support and a comprehensive support program. The firm is beginning the process of engaging with employee representatives on these plans in accordance with country-specific legal requirements.

Late last year, the handset firm agreed to sell and lease back its head office building in Espoo, Finland, because “owning real estate is not part of Nokia’s core business”. The firm said it received €170m for its headquarters from Exilion Capital Oy.

In October 2012, the firm posted its fifth consecutive quarterly loss. The firm recorded an operating loss of €576m ($752) for the quarter ending September 30, 2012, dwarfing the €71m loss the firm posted in the same period in 2011. Net sales also dropped 19 per cent year-on-year from €8.98bn to €7.24bn.

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