Nokia cuts R&D staff in response to sales slump

Nokia is closing its R&D site in Jyväskylä, Finland. In the process about 320 employees will be laid off.

Nokia is closing its R&D site in Jyväskylä, Finland. In the process about 320 employees will be laid off. The company is also making temporary cuts at its production facility in Salo, it announced on Wednesday.

Falling phone sales are forcing Nokia to make the cuts, the company said. Nokia reported fourth-quarter sales down about 19 percent year on year. The company also sold fewer phones: 113.1 million, 15 percent fewer than it sold a year earlier, and also lower than the 117.8 million it sold during the third quarter.

The Jyväskylä site, in a university town in central Finland, works on mobile device product development and marketing, but the company would not give more details. It will be closed by the end of the year, and Nokia now plans to concentrate its mobile device R&D in Finland at four other sites: Tampere, Oulu, Salo and the Helsinki metropolitan area.

Nokia will also temporarily lay off some manufacturing staff in Salo making devices such as the company's Nseries multimedia phones and Eseries business phones. It plans to lay off 20 percent to 30 percent of the 2,500 employees there on a rotational basis, for periods up to 90 days, according to a spokeswoman.

Other cuts will affect 60 employees in global support functions and 30 employees in the New Businesses entity in Services, Nokia said.

Nokia, like other vendors in the sector, aims to lower its costs -- in Nokia's case by more than EUR700 million (US$900 million) by 2010. To meet the target Nokia will continue to look at all of its activities to see where it can save money, according to a spokeswoman.

Tags job cutsNokia

Recommended

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?