Nokia Corp. (NYSE: NOK) continued with its cost-cutting measures today, announcing a headcount reduction of 1,700 employees worldwide, about 2.5 percent of its staff.
Nokia has about 68,000 on staff, not including the 60,000 or so who work for its joint venture,
Nokia Networks , which isn't affected by today's news.
The move is part of Nokia's efforts to cut costs as demand for mobile devices wanes due to the global economic downturn. The company announced a separate job loss program in February. (See
Nokia to Axe 1,000 Jobs,
Nokia to Cut Phone Production,
Nokia Cuts Jobs,
Nokia Plummets, Looks to US, and
Nokia Siemens Dips in Q4.)
Nokia says the cuts, of which about 700 will be in Finland, will affect its Corporate Development Office, global support functions, and "Devices" and "Markets," two of the three units that make up its Devices and Services line of business (the third is "Services").
Devices is responsible for the vendor's mobile device portfolio (no, really!), while the Markets unit is responsible for the management of Nokia's "supply chains, sales channels, brand and marketing activities."
Nokia says its sales, marketing, and technology management functions are being cut "to match the pruned portfolio and global consumer demand," while there are a number of marketing and other general positions related to the Symbian acquisition that "will no longer be integral." (See
Nokia On Track to Buy Symbian and
Nokia Completes Symbian Buy.)
Nokia's stock is down 2.9 percent today on the Helsinki stock exchange to €8.73 (US$11.29).
Nokia isn't the only company cutting back its staff numbers to reduce costs:
— Ray Le Maistre, International News Editor,
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