Nokia Cuts 300 IT Jobs, Outsources 820 More

Nokia has said it will cut more than 1,000 IT jobs as part of a previously-announced restructuring programme at the Finnish manufacturer.

The company will outsource its IT operations to two Indian suppliers, HCL Technologies and Tata Consultancy Services. As part of the move, 820 mostly Finnish-based workers will be transferred to the two companies, meaning that 300 jobs will be lost in total.

Nokia job cuts

Nokia’s workforce has been slashed by around a third since CEO Stephen Elop assumed control and these latest job cuts are part of a massive cost reduction programme announced last June. Nokia said it wanted to cut 10,000 jobs in June and reduce its device and services expenses to around €3 billion by 2013.

It has shed non-essential business arms such as its luxury phone subsidiary Vertu and in March announced that it was cutting 1,000 jobs in its native Finland.

The timing of these latest cuts is somewhat surprising as only last week, Nokia announced better than expected results for the fourth quarter of 2012. This was attributed to mobile phone sales of 86.4 million units, including 6.6 million smartphones, worth £3.2 billion.

The figures were an improvement on the third quarter of 2013 where it posted an operating loss of £467 million. However, this was still an improvement on losses of £1.2 billion in the second quarter and £1.1 billion loss it sustained in the first quarter.

However, Nokia has said that the first quarter of 2013 will be less profitable thanks to the competitive environment and the fact that it is traditionally a tough sales period.

How much do you know about smartphones? Test your knowledge with our quiz.

Steve McCaskill

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

Recent Posts

Ericsson To Cut 1,200 Jobs in Sweden Amid ‘Challenging’ Market

Swedish telecoms giant Ericsson blamed “challenging mobile networks market” and “further volume contraction” for job…

8 hours ago

FTX’s Sam Bankman-Fried Sentenced To 25 Years In Prison For $8bn Fraud

Dramatic downfall. Sam Bankman-Fried sentenced to 25 years in prison for masterminding $8bn fraud that…

9 hours ago

Elon Musk Orders FSD Demo For Every Tesla US Sale

Fallout avoidance? Tesla buyers in the US must be shown how to use the FSD…

10 hours ago

Amazon Pumps Another $2.75 Billion Into Anthropic

Amazon completes its $4bn investment into AI firm Anthropic, after providing an additional $2.75bn in…

12 hours ago

The Sustainability of AI

While AI promises unparalleled efficiency, productivity, and innovation, questions regarding its environmental impact loom large.…

14 hours ago

Trump’s Truth Social Makes Successful Market Debut

Shares in Donald Trump’s social media company rose about 16 percent after first day of…

15 hours ago