Nokia will cut 10,000 jobs before 2014

Nokia will cut 10,000 jobs before 2014
Nokia's Lumia range has struggled to gain significant traction in the market

Nokia has announced it will cut a further 10,000 jobs worldwide as it looks to steady its financial ship.

The cuts come as part of Nokia's plan to significantly reduce its operating expenses, while sharpening its strategy, improving its operation and returning to profitable growth.

The Finnish firm has had a rough ride over the past few years, as it lost ground in the smartphone market, with its Windows Phone-based Lumia range yet to match the likes of Samsung, Apple and HTC in the sales game.

40,000 and counting

This latest round of cuts from the Scandinavian firm now brings the total lay offs to 40,000 since 2010.

The various money saving plans Nokia is about to employ are predicted to reduce its operating costs by €1.6 billion (around £1.3 billion/$2 billion), which would see total costs for 2013 equate to €3 billion – a significant reduction compared to the €5.25 billion (around £4.3 billion/$6.6 billion) Nokia spent in 2010.

Timo Ihamuotila, Nokia's executive vice president and CFO, said: "With these planned actions, we believe our Devices and Services business has a clear path to profitability. Nokia intends to maintain its strong financial position while proceeding aggressively with actions aimed at creating shareholder value."

Another way Nokia is cutting costs is by selling its luxury phone brand Vertu to private equity group EQT.

Nokia has also announced that a number of its executives will be leaving the company, including Jerri DeVard (chief marketing officer), Mary McDowell (executive vice president of Mobile Phones) and Niklas Savander (executive vice president of Markets).

From Nokia via Engadget

John McCann
Former Global Managing Editor

TechRadar's former Global Managing Editor, John has been a technology journalist for more than a decade, and over the years has built up a vast knowledge of the tech industry. He’s interviewed CEOs from some of the world’s biggest tech firms, visited their HQs, and appeared on live TV and radio, including Sky News, BBC News, BBC World News, Al Jazeera, LBC, and BBC Radio 4.

Latest in Nokia Phones
Composite of three new Nokia phones
3 new retro-inspired Nokia phones will have you rocking out like it’s the 2000s
Nokia G42 in So Purple color
Nokia G42 combines repairability and 5G connectivity in a handsome purple package
Nokia 5710 Xpress Audio with earbuds pictured on the screen
Nokia’s new phone is like a 3310 with earbuds built into the back – and I love it
A Nokia G60 5G from the front and back
A trio of cheap phones from Nokia have landed, with eco-friendly credentials
The Nokia G11 from the back, in someone's hand
Nokia G11 review
A Nokia G21 from the front, showing the home screen
Nokia G21 review
Latest in News
EA Sports F1 25 promotional image featuring drivers Oscar Piastri, Carlos Sainz and Oliver Bearman.
F1 25 has been officially announced, with this year's entry marking a return for Braking Point and a 'significant overhaul' for My Team mode
Garmin clippd integration
Garmin's golf watches just got a big software integration upgrade to help you improve your game
Robert Downey Jr reveals himself as Doctor Doom to a delighted crowd at San Diego Comic-Con 2024
Marvel is currently making a major announcement about Avengers: Doomsday's cast on YouTube, and I think it's going to be a long-winded reveal
Samsung QN90F on yellow background
Samsung announces US prices for its 2025 mini-LED TV lineup, and it’s good and bad news
Nintendo Switch Lite
Forget the Nintendo Switch 2, the original Switch is getting one last hurrah in a surprise Nintendo Direct tomorrow
The Samsung Galaxy S25 Edge on display the January 22, 2025 Galaxy Unpacked event.
Samsung Galaxy S25 Edge colors seemingly revealed in new video, and there’s another sign of an imminent launch