The once mighty telecoms giant Nokia has been going through some difficult times over the last few years and this week’s announcements only confirms that the company is going through more trying times.
The Finnish company has announced that it has let go of three of its top executives, but more than this, it has also announced that it is laying off 10,000 people. Other announcements include the shut down of three facilities and the sale of its luxury brand Vertu. The only positive bit of news, if you can call it that, is Nokia’s decision to buy imaging technology from Scalado.
According to Nokia, the 10,000 jobs that will be terminated will happen within a period that covers now until the end of 2013. These 10,000 jobs are on top of the 14,000 jobs that the company announced last year. The total cost for the company’s restructuring will mount to 1 billion euros. But Nokia is hopeful that their radical move will result in a savings of 1.6 billion euros. Right now Nokia has 124,000 employees.
In the facilities front, The three facilities that will be shut down are the ones located in Burnaby, Canada, Ulm, Germany and Salo in Finland.
The Vertu luxury brand, on the other hand, has been sold to a private equity group based in Northern Europe. Vertu was actually the leading luxury brand for mobile phones but that market segment has gone fallow after the rise of smartphones.