Nokia has announced plans to “align its global workforce” in order to deliver on its new strategy, which involves a partnership with Microsoft.
Around 4,000 employees are expected to leave the company by the end of next year, with the majority of reductions in Denmark, Finland and the UK. In addition, about 3,000 employees involved with Symbian will be transferred to Accenture. These staff reductions are part of Nokia’s aim to cut one billion Euro from its operating costs by the end of 2013.
As well as this, some of the company's research and product development sites will be combined.
The Accenture collaboration will see Nokia outsourcing its Symbian software activities, moving about 3,000 employees to Accenture. This agreement is expected to be finalised in the summer. Under the proposed agreement, Accenture would also provide Nokia with software and services for the Windows Phone platform. Accenture and Nokia have been working together since 1994, with Accenture acquiring Nokia's professional services unit in 2009.
Stephen Elop, Nokia president and CEO, said “At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions. However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia. We are offering those who are losing their jobs a range of options, from individual re-employment support and re-training to making investments to promote innovation and working with a variety of partners to create new opportunities.”