Nokia Gives Hundreds of Staff Members the Axe

    January 11, 2005
    Chris Crum

Several hundred Nokia staff members get the axe because the company wants to cut spending on research and development.

Its always a shame when so many people have to go to the unemployment office just so a company can reduce spending, but what can you do?

“Reducing personnel is always a very tough decision to make. However, the planned streamlining of our R&D network will enable us to grow our business in a profitable way without sacrificing future business potential,” said Anssi Vanjoki, Executive Vice President, Multimedia, Nokia. “Our multimedia strategy remains unchanged. We see very strong momentum in our smart imaging business and while games, music and media are still in a more early development phase, we continue to see great potential also in these areas.”

Nokia is also stopping development of some of its more “exotic” creations also to cut spending. They want to bring overall Nokia R&D expenditure down to 9% – 10% of net sales by the end of 2006.

Nokia expects the planned reductions to materialize gradually during this year. They claim that the negotiation process will aim to find alternative solutions and assignments for as many employees as possible within Nokia.

I wonder how many that is…

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.