On the Cover
Local Nokia staff may be cut
Wednesday, 04 July 2012 00:00
Written by Nicola Mawson
Cellphone manufacturer Nokia may trim some of its local staff numbers as the company restructures.
Recently, the group said it aimed to trim up to 10 000 positions globally by the end of 2013. Reuters notes this will take total planned cuts to 40 000 since Stephen Elop took over as CEO in September 2010.
The jobs cuts form part of a “range of planned actions aimed at sharpening its strategy, improving its operating model and returning the company to profitable growth”, said Nokia.
Nokia reported first quarter sales of €7.4 billion, down from the prior year’s €10.4 billion, but incurred losses because of “greater than expected competitive challenges and seasonality” and charges related to restructuring.
A Nokia spokesperson says South African staff may be affected, but there is not yet any clarity on this. The proposed changes will impact Nokia employees throughout its operations globally, says the spokesperson.
“The South African office will continue to function and it is also the head office for the South East Africa area.” The spokesperson declined to indicate how many staff members are employed locally.
Nokia will close its facilities in Ulm, Germany, and Burnaby, Canada, as well as consolidate its manufacturing, leading to the closure of its manufacturing facility in Salo, Finland, it said in a statement.
Elop, who is also president of Nokia, said the “planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength”.
The restructuring will save Nokia €1.6 billion by the end of 2013, in addition to the €700 million it achieved on an annualised basis at the end of the first quarter of 2012.
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