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Nokia Making Cuts, Moving U.S. HQ To West Coast

4/27/2011 03:51:06 PM Eastern
Espoo, Finland - Nokia plans to cut 7,000 employees worldwide by the end of 2012 and outsource its Symbian OS software operations to Accenture as part of its previously disclosed plan to regain market share and focus on the Windows Phone OS for smartphones.

The announcements follow a first-quarter 1.4 percent drop in net income to 344 million Euros.

As part of the restructuring, Nokia will move North American sales and marketing operations from White Plains, N.Y., to the company's Sunnyvale, Calif., facilities, a spokesperson told TWICE. "This will give us a greater presence in Silicon Valley, which, of course, is a hub of innovation in mobile and wireless," the spokesperson said. "As part of the global workforce rebalancing, we will ramp down the White Plains, N.Y., office in a transition that will extend through the end of 2012."

The company did not disclose the number of U.S. employees to be cut, but the company said the majority of reductions would occur in Denmark, Finland and the UK.

When asked if Nokia would remain in the U.S. CDMA phone market," the spokesperson said, "Nothing to announce on CDMA today." She did say, however, that Nokia is "increasing our investments in key strategic areas in the U.S."

The 7,000 positions to be cut, including 3,000 to be transferred to Accenture as part of the outsourcing agreement, represent about 12 percent of Nokia's staff, excluding a joint venture with Siemens and the company's Navteq maps group. The cuts will be made in phases through 2012.

The cuts are part of Nokia's plans to cut operating expenses by 1 billion Euros in 2013 compared to 2010. That target was announced last week.

The deal to outsource Symbian operations is expected to be finalized in the summer, with Accenture picking up Nokia's Symbian-related employees by the end of 2011. As part of the deal, Accenture will also provide mobility software, business and operational services around the Windows Phone platform to Nokia and other Windows Phone ecosystem participants. Accenture will become a preferred partner for Nokia's smartphone development activities as well as a preferred provider of services, Nokia also said.

 
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