Nokia, once the world’s foremost provider of cell phones is still suffering through shrinking revenues and a declining cellular business, a situation that is leading the company to fire an additional 10,000 workers.
With nearly 50,000 employees still on the books via the company’s mobile division the new job losses will account for 1 in 5 mobile sector workers at the global technology manufacturer. Nokia in recent years has watched its market share plummet as mobile users turn towards smartphones provided by Apple’s iOS and Google’s Android operating systems. In 2011 Nokia announced a new partnership with Microsoft however the company’s profits have still shrunk as the Windows Phone OS struggles to grab the type of market share provided by Android and iOS smartphones.
In a report to the Wall Street Journal Nokia admits that new mobile operating systems affected it “to a somewhat greater extent than previously expected.”
Nokia plans to fire its additional 10,000 workers by the end of 2013, a move that will save the company $2 billion by the end of that year.
CEO Stephen Elop’s restructuring plan also calls for Nokia’s CMO and heads of markets and mobile phones to step down by month-end. Under the proposed layoffs locations in Finland, German and Canada will be axed.
Upon news of the massive layoffs and slow sales Nokia stock fell to its lowest point since 1996.
Nokia currently employees 122,000 employees of which 53,000 work in its mobile devices unit, the target of the new layoffs. Since taking over in 2010 Elop has cut nearly 40,000 jobs from the company, saving Nokia billions of dollars in revenue.