InterDigital Inc (IDCC)

[mschere]

Nokia Networks chops staff by 10%

April 10, 2003 10:41 GMT


Nokia Networks will cut the jobs of 1,800 people including 1,100 in Finland.

'The planned measures include focusing of research and development programmes, a reduction of approximately 1,800 in the total number of employees, and fine tuning of the Nokia Networks organisation to improve efficiency and effectiveness,” Nokia said in a statement.

The reductions will be made in R&D, operations, sales and marketing and in support functions.

“The focusing of R&D includes a review of costs, scope, timing and number of programs and reducing the number of product configurations in light of the current customer and business situation. The target is to ensure the market, product and architectural leadership position in the GSM, EDGE and WCDMA markets while further increasing the focus and efficiency of R&D activities,” Nokia press release states.

The sales of Networks division have slumped as mobile phone operators are delaying their investments; delays concern especially the next-generation, or 3G, mobile phone networks.

Two months ago when 550 workers lost their jobs, and last year Nokia was forced to shed 10% of the arm's workforce of 18,000 to cut costs and keep it profitable.

While some 20% of Nokia's EUR 30 billion in sales in 2002 came from the network side, only 10% of its profit of EUR 4 billion came from infrastructure sales and in the Q1 Networks was clearly in red.