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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

Why a mobile TV service is just like a zombie

Mark Bridge writes:

Here in the UK, we’re struggling a bit with mobile TV. Which made me wonder what the problem really was. Well, after a long evening with the finest stilton and the cheapest port, the answer came to me in a dream. A mobile TV service is just like the lurching, drooling nightmare creatures that appear in every zombie film. And once consumers understand zombies, they’ll understand the problems with mobile TV. Let me explain.

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Selling your way out of a recession? Of course you can!

Iain Graham writes:

Everybody these days (apart from a lucky few!) is suffering from a lack of business or reduced sales due to the current 'downturn in the economic climate'. In my opinion, this is the time when sales people should stand up and be counted!

No, I don't mean the hard nosed, foot in the door double-glazing, second-hand car or mobile phone types (no offence!), I mean EVERYONE! Selling is a concept as much as it is a profession.

Author: The Fonecast
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Mobile & Contactless Payments

James Rosewell offers his opinion on the current state of mobile and contactless payments.

The banking and mobile industries have big plans for Near Field Communication (NFC) as the mobile payment mechanism of the future. Barclaycard has been leading the way from the credit card sector forming a partnership with Orange, having previously worked with O2, and running a catchy TV advert prompting contactless cards using VISA’s paywave system.

However the reality of NFC payments appears a lot further away. The Point of Sale (POS) technology appears to be badly deployed by some of the first-phase retailers mainly made up of low-value high-volume businesses like coffee shops, fast food outlets and newsagents.

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Insecure Mobile Browsers

James Rosewell writes: I note with interest Barclays mobile on-line banking home page extolling the safety of mobile banking whilst claiming it’s as secure as their non-mobile equivalent. This is on the same page that recommends customers use Opera Mini to access Barclays mobile on-line banking.

Yet following the link to the operamini.com web site and looking at the help section we can read Opera’s answer to the question “Is there any end-to-end security between my handset and — for example — paypal.com or my bank?” and the answer is “No. If you need full end-to-end encryption, you should use a full Web browser such as Opera Mobile.”

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