Nokia cuts IT jobs as financial woes continue

News 17 Jan, 2013

Finnish phone maker to axe 300 IT staff and outsource 820 jobs.

Nokia is to axe 300 IT staff and outsource 820 employees as the ailing device manufacturer continues restructuring.

In a short statement, Nokia noted these changes will increase operational efficiency, reduce operating costs and more accurately reflect the firm’s current size.

“As part of the planned changes, Nokia plans to transfer certain activities and up to 820 employees to HCL Technologies and TATA Consultancy Services,” Nokia said.

“Nokia also plans to reduce its global IT organization by up to 300 employees.”

The job cuts come a week after Nokia hinted at a mini-revival. The handset maker said that shipments of its Lumia smartphone range were better than expected over the holiday season, with more than 4.4 million smartphones shipped.

However, these numbers are still a long way short of its main rivals, including Samsung, which has sold 100 million Galaxy smartphones to date.

It remains to be seen whether CEO Stephen Elop axes any more jobs considering the firm claimed these are the last anticipated reductions.

Nokia had a total of 105,000 employees at the end of the third quarter 2012, a reduction of just under 30,000 employees from the end of 2010.