Nokia To Slash 17,000 Jobs In Global Restructuring

Buried seven paragraphs deep in a release announcing and outlining its restructuring and refocusing efforts (as companies are wont to do when delivering bad news), Nokia announced that it will cut 17,000 jobs worldwide. That’s about 23% of the company’s total global workforce of 74,000.

Nokia is refocusing its efforts on mobile broadband, customer experience management, and services. It also is trying to cut down on operating expenses and overhead by a staggering EUR 1 billion in just a couple of years--by the end of 2013. A majority of the savings are slated to come from “organizational streamlining” (i.e., job cuts), but Nokia is also looking at saving in the areas of real estate, IT, product and service procurement costs, administrative costs, and a supplier reduction.

Nokia HQ in Espoo

For what it’s worth, Nokia has pledged to “begin the process of engaging with employee representatives in accordance with country-specific legal requirements to find socially responsible means to address these reduction needs” as well as local re-training and re-employment support for affected individuals.

"As we look towards the prospect of an independent future, we need to take action now to improve our profitability and cash generation," said Rajeev Suri, chief executive officer of Nokia Siemens Networks, in a press release. "These planned reductions are regrettable but necessary - and it is our goal to make them in a fair and responsible way, providing the support we can to employees and communities."
Tags:  Nokia