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Nokia lays off 3500 employees as smartphone share continues to tumble

post #1 of 65
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Nokia's struggles to compete with Apple's iPhone and the Google Android platform continue to take their toll on the beleaguered Finnish handset maker, which announced on Wednesday that it is laying off 3,500 employees.

Nokia's cuts were described by the company as a strategy intended to "align its workforce and operations." As part of the changes, Nokia will ax 2,200 employees in closing a manufacturing facility in Cluj, Romania, while another 1,300 employees will be cut from the company's Location & Commerce business in Bonn, Germany; and Malvern, Penn.

In all, that's 3,500 employees that are estimated to be affected by Nokia's changes. The personnel reductions are expected to take effect by the end of 2012.

More cuts are likely to come, too, as Nokia revealed it is reviewing its manufacturing operations in Salo, Finland; Komamrom, Hungary; and Reynosa, Mexico. The company said it will "gradually shift" its focus toward software, with personnel at those facilities expected to be affected in 2012.

"We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger," Nokia President and CEO Stephen Elop said in a press release. "We must take painful, yet necessary, steps to align our workforce and operations with our path forward."

Nokia has been going through a painful transition under its new CEO, as the company has failed to respond to the success of Apple's iPhone and devices running Google Android. Nokia was once the far and away dominant worldwide smartphone maker, but it has quickly fallen in the fast-growing market.

Part of Elop's strategy is to ditch its ailing Symbian platform, and instead adopt Microsoft's Windows Phone software on its devices. The company will release its first Windows Phone devices this year, as Elop has admitted that Nokia is "feeling the heat" to bring new phones to market and stop losing market share.



Elop on Wednesday reiterated Nokia's commitment to Europe, in spite of the closings of Germany and Romania. The company is headquartered in Espoo, Finland, near the capital of Helsinki.

"In addition to our headquarters, we have a strong R&D 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 Centers 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."

Nokia and Apple were previously involved in a series of patent infringement lawsuits, with each accusing the other of violation. That dispute was settled in June with Apple agreeing to an undisclosed one-time payment to Nokia, in addition to ongoing royalties.
post #2 of 65
That's really too bad for those affected.
post #3 of 65
You Can Put a Fork in Nokia. Game Over. No More Lives.
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post #4 of 65
It's a little premature to write Nokia's obituary.

The smartphone market couldn't realistically accommodate six operating systems and Nokia made the wise move to kill off Symbian. Too late? Maybe, maybe not, but we don't know right now.

Windows Phone and RIM's QNX will battle it out for third place over the next couple of years and frankly I think Windows Phone has the upper hand as they have buy-in from some handset manufacturers.
post #5 of 65
Quote:
Originally Posted by stelligent View Post

That's really too bad for those affected.

I agree. In tech it's innovate or die.

post #6 of 65
That's a shame. Nokia should have realized that people have high expectations from their smart phones and it's operating system, and should have switched to a more consumer aware operating system sooner. Developers can't port their applications to every smart phone OS out there, so I think with people wanting to see numerous applications in App Stores, the fallout will be there will only be a few smart phone OSes around competing with each other.
post #7 of 65
Quote:
Originally Posted by mcarling View Post

You Can Put a Fork in Nokia. Game Over. No More Lives.

People used to say the same about Apple in the 90's. Nokia have been painfully slow to react, they were too confident of their position and are now being punished for it.

They have a lot of talent & although I'd have liked to have seen them build on MeGo rather than betting on Microsoft I wouldn't write them off yet.
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post #8 of 65



Which is sexier? Nokia or iPhone?
post #9 of 65
Quote:
Originally Posted by King of Beige View Post




Would you buy a Nokia or an iPhone?

the brunette
post #10 of 65
Quote:
Originally Posted by AbsoluteDesignz View Post

the brunette

She deserves an iPhone...
na na na na na...
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na na na na na...
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post #11 of 65
Quote:
Originally Posted by cvaldes1831 View Post

It's a little premature to write Nokia's obituary.

The smartphone market couldn't realistically accommodate six operating systems and Nokia made the wise move to kill off Symbian. Too late? Maybe, maybe not, but we don't know right now.

Windows Phone and RIM's QNX will battle it out for third place over the next couple of years and frankly I think Windows Phone has the upper hand as they have buy-in from some handset manufacturers.

Maybe it was a "wise move to kill off Symbian", but doing it by issuing the burning platform memo, declaring the platform a failure and still relying on it for almost another year (yes, there might be limited availability of a WP7 Nokia phone in selected markets in November, but the full rollout is planned for early 2012)... was definitely wrong. Fact is, that Symbian sales (not market share) were still growing up to this announcement and Nokia was profitable. By now, they create losses (and most restructuring costs have not even occurred yet - laying off a total of 7500 staff members in Europe is not cheap, and Nokia may even have to pay back some subsidies in a few places). And for what? The Nokia/MS construct will never even get close to the combined market share of Symbian and Windows Mobile, unless Oracle kills Android.

Still, the failure was not killing Symbian (it was hopeless), but killing MeeGo. I did not believe it myself (and I am neither an OpenSource nor a Linux maniac at all), but the N9 is really quite slick, and the device is the first credible alternative to an iPhone I have seen, the hardware quality is superb and the software gets the major things right (far more than I would have ever assumed a Nokia/Intel alliance to achieve). WP7 is a step back.
post #12 of 65
Quote:
Originally Posted by island hermit View Post

She deserves an iPhone...

OK, now: where's the "3.5 inches is not enough for me" downer?
post #13 of 65
It's kind of sad seeing them struggle so much. I'd like to see them come out with a really decent smart phone.

The best phone I ever had (when the goal was just a phone, not a smart phone) was a Nokia, 6280 I think. I was traveling internationally all the time, and it was the first phone I was given that would work in Korea and Japan as well as the rest of the world, and I loved it. It was such a benefit that it worked worldwide, but it was also really nicely built, and just a quality product.
post #14 of 65
Quote:
Originally Posted by King of Beige View Post




Which is sexier? Nokia or iPhone?

In this context, three models... All do the same exact function, with virtually the same appearance.

I'll take the one that gives me the best value for my money. In this case, any of the choices may end up costing more once I'm committed to the monthly bills.
post #15 of 65
Quote:
Originally Posted by King of Beige View Post




Which is sexier? Nokia or iPhone?

nokia: they are TWO!!
...and.. iPhone looks kinda 'fake' in that picture.
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post #16 of 65
Quote:
Originally Posted by King of Beige View Post




Which is sexier? Nokia or iPhone?

Not sure really, but as you pointed out earlier that 'in tech its innovate or die' I gotta deduce that the one on the right is more innovative.
post #17 of 65
Quote:
Originally Posted by King of Beige View Post




Which is sexier? Nokia or iPhone?

There are cellphones in those photos?

Thanks for pointing it out; I would not have noticed otherwise.

post #18 of 65
Quote:
Originally Posted by saarek View Post

They have a lot of talent & although I'd have liked to have seen them build on MeGo rather than betting on Microsoft I wouldn't write them off yet.

I think they just laid off a whole bunch of that talent tho'.
post #19 of 65
Quote:
Originally Posted by dreyfus2 View Post

Maybe it was a "wise move to kill off Symbian", but doing it by issuing the burning platform memo, declaring the platform a failure and still relying on it for almost another year (yes, there might be limited availability of a WP7 Nokia phone in selected markets in November, but the full rollout is planned for early 2012)... was definitely wrong. Fact is, that Symbian sales (not market share) were still growing up to this announcement and Nokia was profitable. By now, they create losses (and most restructuring costs have not even occurred yet - laying off a total of 7500 staff members in Europe is not cheap, and Nokia may even have to pay back some subsidies in a few places). And for what? The Nokia/MS construct will never even get close to the combined market share of Symbian and Windows Mobile, unless Oracle kills Android.

Still, the failure was not killing Symbian (it was hopeless), but killing MeeGo. I did not believe it myself (and I am neither an OpenSource nor a Linux maniac at all), but the N9 is really quite slick, and the device is the first credible alternative to an iPhone I have seen, the hardware quality is superb and the software gets the major things right (far more than I would have ever assumed a Nokia/Intel alliance to achieve). WP7 is a step back.

I agree that Meego is quite attractive paired with the N9. however, WP7 with Mango offers a truly unique, forward thinking OS. As slick as it is, Meego really only offers essentially the same functionality as ios5; one screen/mode for apps, one for notifications and one for multitasking.. WP7 offers these functionalities in a unique, live and interactive way that neither Meego, Ios5 or even Android can duplicate. I personally think is was the smartest move Nokia could have made. And remember, the N9 is essentially the same as the forthcming Sea Ray.

Quote:
Originally Posted by dreyfus2 View Post

OK, now: where's the "3.5 inches is not enough for me" downer?

He's around here somewhere.
post #20 of 65
I wonder if Nokia will now sue every other company that makes smartphones...

Way to go Nokia...

Instead of putting money to create a great product and succeed Nokia tried to kill a good product (or just have passive profit over it) and failed (to a certain extent). Now, deal with your sucky moves...

I feel bad for those loosing jobs, but on the other hand, I couldn't care less for Nokia. Its been three years I swore nobody in my family would ever get a Nokia phone again, and a few years before I was the first one to say that Nokia was great. This is something Nokia never realized, bad marketing.
post #21 of 65
Also, in all but bureaucratic terms, it is a part of the capital, not a neighbouring city.
post #22 of 65
Quote:
Originally Posted by PaulMJohnson View Post

It's kind of sad seeing them struggle so much. I'd like to see them come out with a really decent smart phone.

The best phone I ever had (when the goal was just a phone, not a smart phone) was a Nokia, 6280 I think. I was traveling internationally all the time, and it was the first phone I was given that would work in Korea and Japan as well as the rest of the world, and I loved it. It was such a benefit that it worked worldwide, but it was also really nicely built, and just a quality product.

They did. It's the N9 but they killed that off too. It will not even be launched in the US.
post #23 of 65
Maemo, MeeGo, MeeToo... I get it all mixed up!
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post #24 of 65

deleted


Edited by kellya74u - 7/24/13 at 9:45am
post #25 of 65
Quote:
Originally Posted by kellya74u View Post

With all of the other bad economic news In the European Union, this is really sad for the Nokia employees. It's more than money. Its the loss of a sense of well-being, reduced hope for the future, & a huge dose of anxiety & uncertainty. Things are so bad that President Obama offered encouragement by telling the EU to get their economic act together. However, a German spokesman said he didn't appreciate the comment coming from his friend (Obama), as the US economy is in such bad shape with high unemployment.

Since the $ source has shifted from Nokia to Apple, maybe the Nokia's employees could be hired by Apple. Of course, they would have to move to China to compete for the American jobs that are already there now. But they should be patient. Many other companies send more jobs there, daily, so there is hope.

NICE!!!!!!!! Great and poignant post....
post #26 of 65
Quote:
Originally Posted by kellya74u View Post

Since the $ source has shifted from Nokia to Apple, maybe the Nokia's employees could be hired by Apple. Of course, they would have to move to China to compete for the American jobs that are already there now. But they should be patient. Many other companies send more jobs there, daily, so there is hope.

Well, after the first tour of those factories in China, I doubt any of these Germans or Americans would want those jobs.

It's hard to compete when people in China are willing to put up with these working conditions and extremely low compensations. That's why it always puzzles me when Americans say they hope China fail, well guess what, if China fails, workers there would be even more willing to put up with even worse working conditions and worse compensations, hence make them even more competitive and will take away even more jobs from the rest of the world. You'd better hope these Chinese workers get much higher wage very soon so that they'd lose competitiveness and so companies would start reconsidering US workers again.
post #27 of 65
Quote:
Originally Posted by drobforever View Post

Well, after the first tour of those factories in China, I doubt any of these Germans or Americans would want those jobs.

It's hard to compete when people in China are willing to put up with these working conditions and extremely low compensations. That's why it always puzzles me when Americans say they hope China fail, well guess what, if China fails, workers there would be even more willing to put up with even worse working conditions and worse compensations, hence make them even more competitive and will take away even more jobs from the rest of the world. You'd better hope these Chinese workers get much higher wage very soon so that they'd lose competitiveness and so companies would start reconsidering US workers again.

I thought they wanted Pres. Obama to fail....
post #28 of 65
It's too bad because this really is a slick looking device.
http://swipe.nokia.com/ Is Nokia still turning a quarterly profit or have they fallen into the red?
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post #29 of 65
Quote:
Originally Posted by mcarling View Post

You Can Put a Fork in Nokia. Game Over. No More Lives.

My fork is being used to check for life signs of RIM.
post #30 of 65
Quote:
Originally Posted by cvaldes1831 View Post

There are cellphones in those photos?

Thanks for pointing it out; I would not have noticed otherwise.


Is that an iPhone in your pocket, or are you just glad to see me?
post #31 of 65
Quote:
Originally Posted by igorleandro View Post

I wonder if Nokia will now sue every other company that makes smartphones...

Way to go Nokia...

Instead of putting money to create a great product and succeed Nokia tried to kill a good product (or just have passive profit over it) and failed (to a certain extent). Now, deal with your sucky moves...

I feel bad for those loosing jobs, but on the other hand, I couldn't care less for Nokia. Its been three years I swore nobody in my family would ever get a Nokia phone again, and a few years before I was the first one to say that Nokia was great. This is something Nokia never realized, bad marketing.

Bad marketing in the US for sure. But not in Europe or Asia.

Actually, was it really bad marketing in US that prevented greater penetration? Or was it a case of bad carrier relationship?
post #32 of 65
Quote:
Originally Posted by King of Beige View Post




Which is sexier? Nokia or iPhone?

Is that the iphone or the samsung? I can't tell a difference...


By the way, I would choose the ones on the left. I like the 2 better than 1 deal personally!
post #33 of 65
Quote:
Originally Posted by King of Beige View Post




Which is sexier? Nokia or iPhone?

The one on the right definitely came from Silicone Valley!
post #34 of 65
There would probably not even be an Apple, if not for NeXT.
post #35 of 65
Today. (oops)
post #36 of 65
Quote:
Originally Posted by King of Beige View Post

Which is sexier? Nokia or iPhone?

post #37 of 65
This thread has gone downhill in the best possible way.
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post #38 of 65
Quote:
Originally Posted by cvaldes1831 View Post

Windows Phone and RIM's QNX will battle it out for third place over the next couple of years and frankly I think Windows Phone has the upper hand as they have buy-in from some handset manufacturers.

I think five years from now it will still be an iOS/Android battle with RIM dead and buried, an as yet unannounced OS in 3rd, and Microsoft in a distant 4th.
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post #39 of 65
My daughter has a Nokia. Not sure what the model is - C3?, but it's a lovely phone for calling, texting and taking pics. It looks classy too with a brushed metal finish. And it is Much, much cheaper on monthly payments on contract than my iPhone. She has no desire to play games or squint at internet pages. She has no desire to be continually connected to the Internet, most things that are 'desperate to know' can actually wait till she's back on her computer at some point. She LOVES her Nokia phone!

Yes and the Nokia N9 looks sweet - what a great interface, why the need to tie into WP7?
post #40 of 65
okay you missed the fact that they said they are going to focus their business on software.

They hired the Stephen Elop from M$ and next thing you know they do a deal with M$ and and now their focus is going to be software.

Is that because the Stephen Elop does not know how to deal with Hardware.

I said it before, hardware engineer can design hardware and write code if necessary but software engineer can only write code and usually have no clue about hardware. Hardware is is foreign concept to most software types.
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