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Nokia revamp to hit 7,000 jobs; 300 in India too
World's largest cell phone maker Nokia on Wednesday said up to 300 jobs would be cut in India by end of 2012, as the company embarks on restructuring that would affect 7,000 employees worldwide.
As part of the latest revamp, the Finnish entity would be laying off 4,000 people globally, while 3,000 jobs would be moved to the United States major Accenture that would take care of Nokia's Symbian software activities.
"With the restructuring, up to 300 jobs in the R&D segment will be cut in India by the end of 2012. The layoffs will be minimal," a Nokia spokesperson told PTI.
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Nokia revamp to hit 7,000 jobs; 300 in India too
Without disclosing finer details, the official said that most of the people working on Symbian would be transferred to Accenture.
Sources said about 800-900 jobs are likely to affected in India in the R&D (Research and Development) segment.
Nokia's India operations has a total workforce of about 10,000. Out of them, around 1,500 employees are in the R&D section.
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Nokia revamp to hit 7,000 jobs; 300 in India too
The Finnish major in a statement today announced plans to align its global workforce and consolidate site operations, which would result in cost reductions 1 billion euro.
Nokia plans to enter into a strategic collaboration with Accenture, whereby it would transfer its Symbian software activities as well as about 3,000 employees to that firm.
"Transitioning employees, located in China, Finland, India, the United Kingdom and the United States, will initially work on Symbian software activities for Nokia," it said.
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Nokia revamp to hit 7,000 jobs; 300 in India too
Over time, Accenture and Nokia would seek opportunities to retrain and redeploy transitioned employees.
"In addition, Nokia also plans to reduce its global workforce by about 4,000 employees by the end of 2012, with the majority of reductions in Denmark, Finland and the UK," the statement said.
All the employees affected by the reduction plans would remain on Nokia payroll till 2011-end. Workforce reduction are expected to happen in phases till the end of 2012, linked to roll-out of Nokia's planned product and services portfolio.
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Nokia revamp to hit 7,000 jobs; 300 in India too
Nokia president and CEO Stephen Elop said the company is offering those who are losing their jobs a range of options such as individual re-employment support and re-training to making investments to promote innovation and working with a variety of partners to create new opportunities.
With the collaboration, Accenture would provide mobility software services to Nokia for future smartphones. Under the proposed agreement, Accenture would become a preferred partner for Nokia's smartphone development activities, as well as a preferred provider of services.
"The companies expect completion of the final agreement during summer 2011, and expect the transition of employees by the end of the calendar year 2011," the statement added.
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Nokia revamp to hit 7,000 jobs; 300 in India too
The Finnish company, which is facing stiff competition and falling market share in the growing smartphone business, also plans to consolidate its R&D development sites, which include expansion of some sites and contraction or closure of others.
To bolster its market competitiveness, Nokia recently entered into a strategic partnership with Microsoft that would see the Finnish entity's smartphones using Windows Phone platform.
"Nokia intends to ramp up its capacity for the development of Nokia smartphones based on the Windows Phone platform, the company's broad range of mobile phones and its services portfolio," it said.
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Nokia revamp to hit 7,000 jobs; 300 in India too
Elop said the company is focused on its leadership across smart devices, mobile phones and future disruptions.
"However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programmes for the talented people of Nokia," he added.
Further, the company would be launching a comprehensive social responsibility programme for employees and the communities likely to be affected by the personnel reductions.