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Nokia To Cut 10,000 Jobs and Close 3 Facilities 350

Posted by timothy
from the role-of-management-is-to-suck dept.
parallel_prankster writes "NY Times reports that Nokia said on Thursday it would slash 10,000 jobs, or 19 percent of its work force, by the end of 2013 as part of an emergency overhaul that includes closing research centers and a factory in Germany, Canada and Finland, and the departures of three senior executives. The company also warned investors its loss was likely to be greater in the second quarter, which ends June 30, than it was in the first, and that the negative effects of its transition to a Windows-based smartphone business would continue into the third quarter. Nokia, based in Espoo, Finland, posted a loss of €929 million, or $1.2 billion, in the first quarter as sales plummeted 29 percent. Once the undisputed global leader in the mobile phone business, Nokia has been outcompeted by Apple, as well as by Samsung and other makers of handsets running Google's Android operating system." (Here's another source, if you're hit by the NYT paywall, and the company's own positive spin.)
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Nokia To Cut 10,000 Jobs and Close 3 Facilities

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  • by Nursie (632944) on Thursday June 14, 2012 @09:41AM (#40321825)

    I should add that it's also entirely obvious that this would happen since the MS deal.

  • by Anonymous Coward on Thursday June 14, 2012 @09:46AM (#40321889)

    Nokia was working on another Linux based operating system. This is now stopped [maemo.org].

    More insight into how the board of Nokia is being stacked with Microsoft cronies [blogs.com].

  • by oh_my_080980980 (773867) on Thursday June 14, 2012 @10:13AM (#40322195)
    Think again. Investors punished Nokia after the announcement of the Microsoft deal. Their stock took a massive hit. Then it took them ONE YEAR to bring a Windows phone to market and in the meantime they killed off their Symbian product.

    All this was in direct relation to the Microsoft deal.
  • by tpheiska (1145505) on Thursday June 14, 2012 @10:18AM (#40322263)

    Mod parent up. The blog in question is awesome. For example this [blogs.com]:
      "Before the Burning Platforms memo, in 2010 Nokia towered over its rivals like very few companies have ever managed in a Fortune 500 size scale. Nokia's smartphones sold more than 2x those of the iPhone and more than 3x as many as Samsung. Today only 18 months later, Nokia is a third the size of the iPhone and one quarter the size of Samsung's smartphones. Never, ever, in any industry, has a global market leader collapsed this comprehensively. This is a world record in destruction of a market leader. Understand what that means. Elop has set a world record in management failure. He is a world record holder in the most incompetent CEO that has ever been. Not just the worst CEO now, but of all time - that is what 'world record' means - and this collapse of Nokia is BY A WIDE MARGIN the biggest collapse of a global Fortune 500 sized company, who was the market leader in its own industry. I have been asking my readers to come up with any example of such total collapse in 12 months in economic history - never been done. Never. This is the worst management failure of all time! And it was not caused by a tsunami or earthquake or national revolution or exploding factory. It was caused by Stephen Elop. He started the destruction on a February day in Espoo when he released his Burning Platforms memo. "

  • by symbolset (646467) * on Thursday June 14, 2012 @10:47AM (#40322601) Homepage Journal

    The iPhone proved a hugely popular choice and the smartphone started to boom. Established players Palm, Nokia, RIM, Motorola Mobility, Samsung, HTC and LG faced a difficult choice as they clearly needed a new winner. Palm made the wrong choice to go their own way and imploded. Nokia went their own way and suffered but survived on momentum. RIM continued to go their own way, confident their customers were committed due to the nature of their offering. When Windows phone came out, almost all the survivors hedged their bets with it but RIM persisted in continuing to go their own way and imploded. When Windows Phone proved an unpopular choice most of the survivors kept it as a hedge but emphasized their alternative, but for some reason [semiaccurate.com] Nokia bet the farm on it and imploded.

    - History of Smartphone Economics, 2009-2012.

    "If you bet the farm often enough eventually you win a factory job."

    - Anonymous

  • by Anonymous Coward on Thursday June 14, 2012 @11:03AM (#40322747)

    To add a little perspective (and some numbers), Nokia stock fell 14% when the partnership was announced. That took their share price to 7.00 Euros. Today, Nokia are trading at 2.35 USD. Nokia's market capitalization is $8.8 Billion.

    Considering all the mobile phone tech they have pioneered down the years, you have to think that their patent portfolio alone is worth more than $8.8 Billion to a few big players. Their brand name is still recognized worldwide, too.

    Enter the asset strippers ......

  • by quacking duck (607555) on Thursday June 14, 2012 @02:08PM (#40325633)

    Oh, not this "Nazis were socialists--it's even in their name!" myth again. You didn't outright say it, but implying they hated the Jews because they were capitalist leaves no doubt. Undoing mods to reply to this nonsense.

    The official name of North Korea is Democratic People's Republic of Korea. Pretty damn sure they aren't democratic, but by your logic they call themselves that, so they must be, right?

    The Nazis used a socialist platform (and yes, scapegoated the Jews for Germany's socio-economic problems) to get into power. But their first attacks after attaining power were against communists and socialists in 1933, blaming them for a massive fire that gutted the Reichstag (parliament) building. Their supporters were arrested and harassed. Left-wing parties were banned. Unions were dissolved. The Nazi party purged its own social-revolutionary wing by massacring its leadership in June 1934 in the "night of the long knives."

    So please, tell me again exactly how the Nazis were actually socialists who hated the Jews because they were capitalist.

Economics is extremely useful as a form of employment for economists. -- John Kenneth Galbraith

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