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Thursday, June 14, 2012

Nokia cuts 10,000 staff, updates its strategy, changes the leadership team and sells Vertu

Nokia says it’s making changes aimed at ‘sharpening its strategy’ and returning to profit. It’ll be investing in location-based services and making this an area in which Nokia products stand out. The company is cutting up to 10,000 staff, reducing the number of factories its runs, acquiring a new business, selling its Vertu luxury brand and changing its leadership team.

Stephen Elop, Nokia president and CEO, said “We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia. We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services. However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions.”

Closures and staff cuts

Factories in Ulm (Germany) and Burnaby (Canada) are expected to close, along with manufacturing in Salo (Finland). Research and Development in Salo will continue. Other unspecified ‘non-core assets’ could also be reduced or sold.

Up to 10,000 staff worldwide are expected to be cut by the end of 2013, in addition to previously-announced redundancies.

Nokia had already planned to cut operating expenses by more than 1 billion Euro in 2013; it now aims to add a further 1.6 billion Euro of cost reductions by the end of 2013.

Leadership team changes

Juha Putkiranta has been appointed as Nokia’s executive vice president of Operations. Timo Toikkanen is the new executive vice president of Mobile Phones, Chris Weber is executive vice president of Sales and Marketing, Tuula Rytila is senior vice president of Marketing and Susan Sheehan is senior vice president of Communications.

This reorganisation will see Jerri DeVard stepping down as chief marketing officer, Mary McDowell leaving her role as executive vice president of Mobile Phones and Niklas Savander no longer being executive vice president of Markets.

Scalado

Technology, patents and staff from imaging business Scalado AB are being acquired by Nokia. It expects Scalado’s HQ in the Swedish city of Lund to become a key site for Nokia’s imaging software for smartphones.

Vertu

Luxury mobile phone brand Vertu - formed in 1998 by Nokia - is being sold to private equity group EQT VI, with Nokia retaining a 10% shareholding. Vertu is based in the UK and employs approximately 1,000 people worldwide.

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Opinion Articles

giffgaff has an official voice worth listening to

Mark Bridge writes:

Yesterday I spotted a new blog page from O2-supported MVNO giffgaff. The company’s head of digital marketing Rob Gotlieb announced the finished version of a promotional film – and mentioned the official voice of giffgaff, voiceover artist Tom Oldham (who, interestingly, was also the voice on Vodafone ads at one point). And for a moment I thought “Official voice?  You what?”

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Mobiles go meddling in medicine

Mark Bridge writes:

“Okay, Mr Bridge, just relax. This won’t hurt a bit. I just need to… oh, hold on a moment, my phone’s crashed. I’ll just pop the battery out and we can start again.”

Some years ago I read an article in Fast Company magazine. Entitled “They Write the Right Stuff”, it explained how NASA’s software engineers couldn’t afford to make errors because any mistakes were likely to kill their colleagues.

That need to check, double-check and then check again was also one of the reasons the space agency ended up looking on eBay for tried-and-tested obsolete components. But now things seem to be swinging towards the opposite end of the scale.

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I want a mobile wallet - and I want it NOW!

Mark Bridge writes:

A few months ago James wrote about the slow adoption of mobile and contactless payments in the UK. Now we hear that Kenya’s M-PESA mobile money transfer service has arrived here. Yes, m-payments are finally going mainstream in the United Kingdom. Well, sort of. Well, alright, not at all really. What’s happened is that people in the UK are now able to send money to M-PESA users in Kenya. But what about the progress of mobile payments in the UK?

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Which mobile operating system will top the charts at Christmas?

James Rosewell writes:

It seems to be accepted that the Apple iPhone will be the top selling mobile phone this Christmas now it’s available on almost every UK network. The more interesting question is which handsets will hold the number 2 to 5 positions - and what operating system will they be running when the smartphone scores are announced in the new year?

Microsoft announced Windows Phone last week and I commented on the importance of persuading their heartland fans to move from iPhone and other platforms to Windows Phone. Disappointingly, finding a mobile retailer willing to sell a Windows Phone is not easy at the moment. Orange tell me they’ve withdrawn the one model they were going to offer from Toshiba. Vodafone didn’t even know what a Windows Phone was.

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Life is toooo complicated!

Iain Graham writes:

I have just bought (well, been given) a new mobile phone!  It, of course, cost me nothing, because we still haven't learnt in this industry, but it came with the now obligatory, shrink-wrapped, 140-page instruction manual on how to use it!!  A perfect cure for insomnia!  I read the opening page or two and it might as well have been written in Serbo-Croatian for all the sense it made to me!!  (I then realised it WAS written in Serbo-Croatian and so I turned to the correct language section) and it was just as incomprehensible!

Even worse, the manufacturers (who are too tight to pay for the printing in the name of 'going green') put the instruction manual on a CD!!

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