Nokia downsizing, plans to cut 10,000 jobs – International News

Nokia fell 39.6 cents to 1.83 euros at the close of trading in Helsinki, bringing the stock’s decline in the past 12 months to 58 percent. The company has a market value of 6.8 billion euros ($8.6 billion), down from a peak of more than 300 billion euros
in 2000.

These are the circumstances that have led Nokia to take some serious steps to stop the further damage to company. Reportedly, Nokia is going to lay off some 10,000 employees from its different offices and research centres world-wide.

Nokia Oyj (NOK1V) decreased its income forecast for the second time in 2012 and said it will cut as many as 10,000 more jobs and shut production and research sites in Chief Executive Officer Stephen Elop’s biggest overhaul.

The stock fell 18 percent to the lowest level since 1996 and pushed Nokia’s market value below $10 billion. As part of the changes, sites in Finland, Germany and Canada will be shut-downed and executives Mary McDowell, Niklas Savander, and Jerri DeVard will
leave, Espoo, Finland-based Nokia reported on Thursday, June 14.

Elop, who took over Nokia as CEO in 2010, is trying to reorganise the company after market-share gains by Apple Inc.’s iPhone and Samsung Electronics Co. devices led to a fall in sales and four straight quarterly losses. Nokia is at the verge of going out
of business in as little as two years unless it cuts down the running expenses, said Alexander Peterc, an Exane BNP Paribas analyst in London.

He further added, “They are trying to survive. They can’t continue like this.”

Nokia said the second-quarter adjusted operating margin at the devices unit will be worse than a loss equivalent to 3 percent of revenue in the first quarter. Nokia had projected margins to be “similar to or below” the first-quarter level.

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Posted by Irfan Khokhar on Jun 15 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry