The new strategy comes after Nokia declared a US$1.67 billion loss in 2012’s first quarter and just four months after 4000 jobs were cut in Finland, Hungary and Mexico in a manufacturing move into Asia.
In today’s announcement, Nokia said it was ‘sharpening’ its strategy to focus on the successful aspects of its Lumia smartphone.
“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,” Nokia president and CEO Stephen Elop said. “However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions.”
Nokia will close facilities in Ulm in Germany, Burnaby in Canada and Salo in Finland, according to its CEO.
“These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,” Elop said. “We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities.”
High-level executives Jerri DeVard, executive vice president and chief marketing officer; Mary McDowell, executive vice president of Mobile Phones and Niklas Savander, executive vice president of Markets, are stepping down during the company restructure.