Today Nokia announced its plans to reduce its global IT organisation by up to 300 employees. Nokia is also transferring 820 employees to HCL Tecnologies, and Tata Consultancy Services. These changes have been made to ‘increase operational efficiency and reduce operating costs’. The job cuts and transfers reflect the reduced scale of Nokia, ‘creating an IT organization appropriate for Nokia’s current size and scope.’
The changes are the ‘last anticipated reductions as part of Nokia’s focused strategy announcement of June 2012’. Back in June 2012 Nokia announced they would be cutting 10,000 jobs and closing several factories. Those changes came more than a year after Nokia announced its broader strategy change to partner with Microsoft and create smartphones running the Windows Phone operating system. Nokia expected to complete the restructuring by the end of 2013, but it looks like they have been able to make strategy changes quicker, and now they will complete the job cuts by mid 2013.
Despite Nokia returning to underlying profitability in its ‘Devices & Services’ division, it is still going to report a financial loss in 2012. Nokia will announce their full earnings report on the 24th of January.