- CNTV English - CCTV News

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

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program