Mobile phone maker disconnecting more employees from their jobs, this time in Romania
Finnish phone maker Nokia will axe a further 3,500 jobs on top of the €1bn cost-cutting plan announced in April.
According to the Guardian, 1,300 jobs wil be slashed from the company’s location and commerce division, which makes maps for Nokia phones, and Nokia will also close its factory in Romania, which will mean 2,200 job cuts
With the latest job cuts, the total number of job losses at Nokia has risen to 10,500 since April.
In April, Nokia had said the cost reductions would be achieved by eliminating 4,000 jobs, mostly in Britain, Denmark and Finland. Another 3,000 employees working on its Symbian operating system would be moved to technology consultancy Accenture.
"We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger," Elop said.
"We must take painful, yet necessary, steps to align our workforce and operations with our path forward."
"Europe is core to Nokia’s future. In addition to our headquarters, we have a strong R&D [research and development] presence in Europe," Elop said.
We have four major R&D sites in Finland and two major R&D sites in Germany, as well as Nokia Research Centres and other supporting R&D sites in Europe.
"Nokia also retains a strong local presence in our many sales offices throughout this region, as well as our operations in Salo and Komarom."
Earlier, Elop, a previous employee at Microsoft, had said the cuts and reorganisation were needed to prepare for the partnership with Microsoft.
Nokia’s profits had registered a drop of 16% in the fourth-quarter last year.
Increasingly, the high-end and midrange smartphone markets are being captured by Apple and Google’s Android OS run smartphones.
Nokia has failed to make an impact in the large and profitable North America market. Meanwhile, in the low-end hand-set market, Nokia’s profits have dipped following the entry of less-expensive Asian alternatives.
Earlier this year, Elop had indicated that Nokia may witness a major overhaul. In an internal memo of the company, Elop wrote, "Nokia, our platform is burning. It will be a huge effort to transform our company."
Now, announcing the job cuts Elop said, "With this new focus, we also will face reductions in our work force."
"This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs," he added.
Elop also said that there would be no further job losses saying the restructuring announcement was the "full plan for as far as we can see into the future."
At the end of 2010, the Finnish company had 59,080 employees. Its deal with Microsoft is expected to cut costs by about 1bn euros a year.
Nokia has a global manufacturing network stretching from Latin America (Brazil and Mexico) to Europe (Finland, Hungary, Romania and the UK) and Asia (China, India and Korea).
Nokia has said that it will set up a new manufacturing site near Hanoi in northern Vietnam in 2012, with an initial investment of approximately EUR200m.