Hundreds of Nokia jobs under threat

Faced with disappointing profits, Finnish phone maker is making workforce changes in sales, R&D, and other units. About 600 jobs are likely at risk.

The jobs of around 600 Nokia employees are at risk, as the Finnish phone manufacturer begins making changes to its workforce in the wake of disappointing profits.

In a statement Tuesday, the company said it is planning changes in its sales and marketing unit, affecting around 450 employees. In addition, the R&D division will "sharpen its focus on fewer, but stronger, research areas," Nokia said, with around 130 Nokia Research Center jobs affected. The company is also planning "workforce adjustments" in its global process operations, affecting around 35 employees.

Nokia will also close its Turku site in Finland, relocating around 220 staff members to Salo, also in Finland. This will take place at the end of January, with the staffing changes coming into force at the start of January.

A Nokia representative told ZDNet UK on Tuesday that there is "the potential for a certain number of job losses" but denied that all of the staff members being reorganized will definitely be made redundant. Consultation with potentially affected employees is under way.

"Today's changes are part of Nokia's constant renewal, where it is important to be close to our customers and ensure that our people are able to focus on the key business priorities," Juha Akras, senior vice president of human resources, said in a statement. "Also, our aim is to find alternative work within Nokia for as many employees as possible."

Nokia's announcement comes a few weeks after the company announced a 30 percent drop in profits. Last week, rival handset manufacturer Motorola announced it would be letting around 3,000 employees go, after posting significant financial losses .

The two companies aren't alone. Industrywide, tech layoffs are piling up on a daily basis.

David Meyer of ZDNet UK reported from London.

 

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