Nokia Slashes Jobs Amid R&D Overhaul

On its own and as part of its joint venture with Siemens, Nokia is shedding staff in concerted efforts to reduce costs.

Last week, the world’s largest manufacturer of mobile phones cut 330 positions at research-and-development facilities in Denmark and Finland. Earlier this month, Nokia Siemens Networks (NSN), its telecommunications-equipment joint venture with Germany’s Siemens AG, announced that it would eliminate between 4,500 to 5,800 jobs by 2011.

Nokia today announced further headcount reductions, indicating that it would pare about 220 R&D jobs in Japan as part of an ongoing restructuring.

Said Nokia:

“As part of its global efforts to align its research and development (R&D) operations to be in line with its focused portfolio of future products, Nokia will be reducing its R&D activities in Japan.”

Before today’s move, Nokia had announced about 4,000 job reductions since January, including approximately 1,300 voluntary redundancy packages.

Nokia’s R&D group includes about 17,000 employees. Nokia, like many other information-technology concerns, is shifting some R&D jobs from relatively high-cost jurisdictions to lower-cost ones.

The company announced a third-quarter net loss of 559 million euros amid rising competition in the smartphone market. It also has suffered well-documented problems with its Nokia Siemens Networks joint venture.

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