Nokia cuts 7,000 jobs as firm shifts focus to Windows Phone 7

Symbian legacy roles to be outsourced

Nokia cuts 7,000 jobs as firm shifts focus to Windows Phone 7
Largely as predicted, Nokia has announced 4,000 jobs are to be axed and a further 3,000 outsourced by the end of 2012 as the Finnish firm looks to restructure its business ready for Windows Phone 7.

The cut backs, which will see roles focusing on legacy software for Symbian shift to management consultants firm Accenture, will impact 12 percent of its phone unit workforce.

Reports suggest Nokia is looking to cut €1 billion ($1.46 billion) from its costs.

Clarity and cut-backs

Nokia confirmed that the majority of cuts will be made to its workforces in Denmark, Finland and the UK.

"At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions," said Nokia president and CEO Stephen Elop in a statement.

"However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia."

Down with R&D

The move is being billed as a response to what outsiders have long pitched as excessive research and development costs, largely as a result of Nokia's leading role in Symbian.

By handing control over to Accenture, the firm will be able to focus its activities on Windows Phone 7, itself maintained and run by Microsoft.

Nokia's R&D costs will fall as a result, but so too will the number of jobs on the sector.

Nokia itself, however, claims only some areas of R&D will be cut back, adding that other sites will actually 'expand'.

"We are offering those who are losing their jobs a range of options, from individual re-employment support and re-training to making investments to promote innovation and working with a variety of partners to create new opportunities," Elop concluded.

[source: Nokia]

With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.