Nokia announces plans for significant changes to its workforce in line with its strategy The planned headcount reduction is expected to be about 4000 employees.
In order for Nokia to compete in a redefined industry landscape and execute on the new strategy announced on February 11,
Nokia today announced plans to align its workforce and consolidate its site operations around the world.
Nokia also announced plans today to transfer its Symbian software activities to Accenture. Under the proposed agreement,
approximately 3,000 Nokia employees will transfer to Accenture by the end of 2011.
Nokia’s new strategy calls for changes in the way Nokia works, and the changes announced today will mean a realignment of
sites, so that each site has a clear role and a clear mission. The aim is to increase speed and accountability, focus on
activities which give Nokia a clear competitive advantage, work more closely with our key suppliers, and benefit from having
co-located teams with a clear mandate, working together.
“Over the past several weeks, we have made and shared a series of significant decisions to strengthen our leadership in the
mobile industry. This also means, we have to make some difficult decisions, which will include reductions in our workforce,”
said Stephen Elop, Nokia president and CEO. “We do not underestimate the impact on or our responsibility to Nokia employees
and communities. As a result, we are working on long-term re-employment programs and alternative career opportunities for as
many Nokia employees as possible during this company-wide transition.”
Today’s announcements are part of Nokia’s target to reduce its Devices & Services non-IFRS operating expenses by 1 billion
Euros for the full year 2013 in comparison to the full year 2010, as announced last week. As a result of the planned employee
transfers and reductions in personnel, Nokia expects to consolidate or close sites in Denmark, Finland, the UK and the U.S. In
accordance with local legal requirements in different countries, discussions with employee representatives started from today.
The impact on Nokia sites are as follows:
In Denmark, the planned headcount reduction is expected to be around 950 employees in Copenhagen. The site is planned to be
ramped down in phases between Q4 2011 and Q4 2012 as product development activities, including R&D, sourcing, and product
management, are discontinued. The Local Sales Unit will remain in Copenhagen.
In Finland, no sites will be closed. The planned reduction in Finland is expected to be about 1,400 employees across the Nokia
sites at Helsinki/Espoo, Oulu, Salo and Tampere, with the biggest impact expected in Symbian and MeeGo, to be phased through
to the end of 2012. The majority of the Symbian software activities in Finland are planned to be transferred to Accenture.
In India, the planned reduction is expected to be about 300 employees in Bangalore, across multiple units. Services R&D work
is planned to continue at this site. The majority of the Symbian software activities in Bangalore are planned to be
transferred to Accenture.
In North America, there will be headcount reductions at several sites totalling about 500, with the majority of that number in
San Diego and White Plains. In White Plains, site activities are planned to be transferred or ramped down in various phases
with a total ramp down expected by the end of 2012. With the exception of customer account teams, all North American Sales
Unit operations and activities will be moved to Sunnyvale, with Sunnyvale becoming the central site for our North American
Sales and Marketing functions.
The Symbian software activities at U.S. sites are being reviewed as a part of the planned transfer to Accenture.
In Romania, all R&D work is planned to discontinue in Cluj by the end of 2011. There are no changes planned for the factory.
The planned headcount reduction is expected to be about 120 employees.
In the UK, the planned headcount reduction is expected to be around 700 employees. At the Southwood site, the majority of
Symbian software activities are planned to be transferred to Accenture and the rest of R&D activities are planned to be ramped
down. Other changes in Southwood include the reduction of work in Markets and Corporate Functions. The closing of the
Southwood site is expected to take place in phases, with the timing linked to roadmap deliveries. The site is expected to be
closed by the end of 2012.
As the majority of the Symbian software activities in the UK are planned to be transferred to Accenture, we will not renew the
leases for Boundary Row and Friar’s House. New premises for impacted employees will be agreed with Accenture.
A new location for Nokia employees will be found in the greater London area to serve as a global hub for Markets and a centre
of expertise for selected Corporate Functions. This site has not yet been identified; however, work is underway to identify a
Design will remain in central London as a key part of Nokia’s presence in the UK and a key contribution to Nokia overall.