As part of its restructuring efforts and cost-saving measures, Nokia Corp., the Finland-based cellphone company, said it will cut thousands of jobs and close many of its factories and research facilities.
Battered by growing and endless competition from companies like Apple and Google, Nokia is attempting to salvage the company.
Nokia Corp. announced Thursday it will lay off 10,000 employees from its global workforce and shut down its factories and research facilities, including in Canada, Finland and Germany. It will also replace those in charge of sales and its mobile phones.
The cuts will help Nokia save approximately $2 billion by the end of next year. In total, the company has slashed 14,000 jobs since the beginning of the year. Since Elop took over, the number of employees has fallen by 40,000.
This move comes as Nokia is attempting to find cost-saving measures and restructure the company. In a news release, the company forewarned of disappointing numbers in its second quarter results, which is expected to be higher than original expectations.
“These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength,” said Stephen Elop, Nokia president and CEO. “We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities."
Elop added that Nokia plans to focus on its Lumia and innovate its present line of featured phones that its customers value the most. It also wants to re-emphasize its location-based services.
Following the announcement, Nokia shares plummeted by 11 percent.
YLE, a Finnish newspaper, is reporting that the Finland government officials met Thursday afternoon to discuss the ongoing problems of the nation’s largest company. It was agreed that the northern town of Oulu, which suffered from a number of job losses, would be eligible for special state subsidies and structural change funds.