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Nokia Cutting 7,000 Jobs Worldwide

April 27, 2011

Nokia Corp. announced Wednesday that it will cut 7,000 jobs around the globe, through layoffs and outsourcing.

Nokia said most of the 4,000 actual layoffs will be in Denmark, Finland and Britain.

The company also plans to transfer 3,000 workers in China, Finland, India, Britain and the U.S. to Accenture PLC as it sources Symbian platform operations to the global management-consulting firm.

The announcements came as Nokia seeks to cut operating expenses by $1.5 billion by 2013 amid fierce competition that has seen its market share plunge and profits plummet.

“At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions,” Elop said Wednesday.

The announcements came as Nokia organized company briefings for thousands of personnel in several cities in Finland.

Elop said that none of the employees will lose their jobs this year, and that the personnel transfers would be made “over time.”

“We have to realign our work force with the needs of our business,” Elop told Finnish broadcaster YLE, saying that Nokia had tried hard to minimize the impact of the job cuts.

“For example, by doing the relationship with Accenture, we’re making sure that quite a number of Nokia employees will have continued employment,” he said.

Nokia’s new strategy to stop developing its own Symbian platform and launch a partnership with Microsoft is an effort to stop losing market share to RIM’s Blackberry, Apple’s iPhone and handsets running Google’s Android platform.

The former undisputed world leader saw its market share fall to 29 percent in the first quarter of this year compared with a peak of 40 percent in the first half of 2008.

“Restructuring had been widely expected but Nokia will be hoping that the transfer of 3,000 of jobs to Accenture will help cushion the blow as it ramps down its Symbian investments,” Ben Wood, head of research at CCS Insight, told Reuters.

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