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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

SpinVox visit offers a few clues about the technology

Mark Bridge writes:

So, dear reader, let’s start at the beginning. Once upon a time, a mere five years ago, there was SpinVox. A company created with help from entrepreneur Christina Domecq – whose surname offers a clue to her family’s background – and Daniel Doulton, the man behind the Psion series 5. (Sherry and portable computers; two of my favourite products. But I digress).

The company’s promise was simple: to turn voicemail messages into SMS text messages.

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That just about covers it

Mark Bridge writes:

In my last article I looked forward to a world of cyborgs… but feared that decent battery life could stifle my dreams. And this week I’m on a similar theme, despairing that the UK’s mobile coverage problems probably won’t be solved before the Silver Jubilee of Vodafone and Cellnet’s networks.

To illustrate my worries, let me tell you a story.

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What price for a hands-free conversation?

Iain Graham writes:

When you get up tomorrow morning and get in the car, why don't you screw up three £20 notes and lob 'em out of the window?!  Oh, and whilst you are at it, take out your driving licence, and put three points in the penalties column!!

Why would you do that, I hear you ask?

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The Singularity is… errm… on its way, I think

Mark Bridge writes:

I’m an optimist. I’m not quite sure why I’m wired that way but I’m perfectly happy with it. Much as you’d expect, I suppose. And although I tend not to tap-dance in the gutter when it’s raining, I firmly believe that life is like a musical.

That’s probably why I’m such a fan of what’s become known as ‘the Singularity’; a point when technology and evolution are expected to combine. As computers become smarter, so they’ll be able to build smarter computers themselves – and before you know it they’ll be repairing people and improving the design. If all goes well I’ll look like a combination of Robocop and Jude Law.

“Fascinating”, I hear you say. “Bring on the medical nanobots. But what’s all this got to do with mobile phones?”

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Web Browser vs. Application Stores

James Rosewell writes:

Anyone involved in the mobile industry will have hardly failed to notice the hype surrounding mobile application stores led by Apple. Application stores provide a really simple way for consumers to install applications on their mobile phones. They’re so simple I heard Iain Graham had used one the other week!

However they don’t solve the fundamental problem of handset compatibility.

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