Troubled Nokia sheds another 3,500 jobs

Troubled Nokia sheds another 3,500 jobs

By Rob Crossley

September 29th 2011 at 2:04PM

CEO Stephen Elop comes out fighting: 'We must take painful, yet necessary, steps'

Nokia is to make 3,500 more staff redundant as the embattled mobile communications giant continues its cost-cutting operation.

The Finnish phones group has said it will cut some 1,300 jobs from its location and commerce division, and also close its Cluj factory in Romania, at the cost of another 2,200 staff.

The drastic measures come just months after Nokia said it will axe 4,000 staff from its global business, in a bid to save as much as €1 billion.

Nokia, thought to be the largest mobile device manufacturer in the world, is failing to reproduce the success it had in the pre-smartphone era.

The company’s CEO Stephen Elop, famously told employees in February that the business was on the precipice of disaster unless drastic measures were taken. Days later the company announced a landmark deal to provide smartphones for Microsoft’s Windows Phone operating system – signalling its intent to focus on hardware.

Nokia’s mobile operating systems and digital stores have lost considerable ground against Apple’s iOS, Google’s Andoid and RIM’s BlackBerry network.

The company on Wednesday began shipments of what is expected to be its final smartphone.

Today, having announced the cuts, Elop said Nokia “will emerge as a more dynamic, nimble and efficient challenger”.

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