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Nokia taking steps to slash spending by a bln euros

04-29-2011 14:07 BJT

Nokia is also taking steps, trying not to be left behind. The Finnish company is still the world's largest phone maker by volume, but it's been steadily losing its share of the market to rivals in the smart phone sphere. Now, in a bid to catch up, it's partnering with Microsoft and laying off 12 percent of its workforce.

Mobile phone giant Nokia will lay off 4 thousand workers and outsource a further 3 thousand to Accenture as part of its plan to slash spending by a billion euros a year.

The Finnish company is still the world's largest handset manufacturer by volume, but has been rapidly losing market share in the lucrative high end of the market.

In February, Nokia unveiled a strategic partnership with Microsoft to help reverse that slide and cut costs. That means its future phones will use Windows rather than its own Symbian software.

CCS Insight's Ben Wood.

Ben Wood, Director of Research of CCS Insight said "Given the new strategy adopted by Stephen Elop, there was always going to be some pain inside Nokia and it's interesting to see that most of that is coming in Finland, Denmark and the UK. The move to put 3,000 people into Accenture is the biggest surprise. That sees the Symbian assets being moved completely outside Nokia and therefore allowing Nokia a clean break as it moves towards its new strategy."

The 7,000 jobs being axed represent 12 percent of Nokia's phone unit workforce.

All of those laid off will remain on the payroll until the end of the year.

The company's shares were up around 3 percent in late afternoon trade.

Editor:Xiong Qu |Source: CNTV.CN

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