Nokia set to axe 3,500 jobs in 2012 as firm takes 'painful but necessary' steps to realign business

Job cuts pass 10,000 mark

Nokia set to axe 3,500 jobs in 2012 as firm takes 'painful but necessary' steps to realign business

Nokia's decision to ally itself with Windows Phone has, broadly speaking, been welcomed by analysts and commentators alike in the eight months since it was announced.

Such a wholesale realignment of Nokia's business, however, was always going to result in a fairly hefty reduction in the giant's workforce, all within a relatively short space of time.

Adding to the total of 7,000 jobs either set to be axed or outsourced announced back in April, the Finnish firm has revealed a further 3,500 positions will be cut between now and the end of 2012, with a particular focus on the firm's location & commerce and manufacturing sites.

Location, location, location

In essence, the company is looking to manufacture phones where they are needed, rather than export them half way across the globe.

As a result, feature phones – typically more popular in Asian markets as the west shifts towards smartphones – will now be manufactured in the firm's factories in Asia.

That means Nokia's manufacturing facility in Cluj, Romania is for the chop, taking 2,200 jobs with it before the end of 2011.

The future of other plants in Finland, Hungary and Mexico is also under review, with any job losses that result expected to take effect in 2012.

Outing the overlap

"We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger," said Nokia president and CEO Stephen Elop.

"Europe is core to Nokia's future. In addition to our headquarters, we have a strong R&D presence in Europe. We have four major R&D sites in Finland and two major R&D sites in Germany, as well as Nokia Research Centers and other supporting R&D sites in Europe.

"We must take painful, yet necessary, steps to align our workforce and operations with our path forward."

Outside of manufacturing, the further integration of Navteq – purchased back in 2007 – into Nokia's location & commerce operations will result in "potential synergies and opportunities to increase effectiveness through automation".

In short, jobs that overlap will be shelved, impacting around 1,300 employees in total before the end of 2012.

[source: Nokia]