Nokia to reduce headcount by as many as 7,000

Nokia has announced it will be cutting around 4,000 jobs by the end of 2012, with the majority of reductions in Denmark, Finland and the UK. The job cuts are related to the handset manufacturer’s choice to switch its primary smartphone operating system from Symbian to Microsoft’s Windows Mobile platform.

Nokia also said it will transfer its Symbian software activites, including about 3,000 employees, to Accenture.

These measures are part of Nokia’s target to reduce its Devices & Services operating expenses by €1 billion (US$1.48 billion) for the full year 2013 in comparison to the full year 2010.

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.

"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 programmes for the talented people of Nokia."