unemployed sad 10,000 Nokia employees will be out of a job

Sad news today for the employees of Nokia as officials have announced that the company plans to cut approximately 10,000 jobs globally.

 10,000 Nokia employees will be out of a job

Sad news today for the employees of Nokia as officials have announced that the company plans to cut approximately 10,000 jobs globally. 

Nokia plans to shut down its R&D department in Ulm, Germany, and Burnaby, Canada.  Also its central manufacturing plant in Salo, Finland will be slashed. 

Competition from Apple’s iPhone and Google’s Android based smartphones have taken a huge chunk out of Nokia’s market share.  Samsung ousted Nokia en route to becoming the largest seller of cellphones.  Nokia now has a 22% market share compared to Samsung’s 25%. 

The struggling cell phone company also reported a net loss of €1.07 billion last year, and that trend doesn’t seem to be stopping.  Nokia’s share price plummeted 7% to €2.05 in today’s early Helsinki trading hours.

Nokia official state that the company intends to cut jobs and other assets to “ensure Nokia’s long-term strength.”  For the time being, Nokia’s strength lies in making affordable phones—whether it’s a feature phone or a smartphone.  However, immense competitions from Samsung, Taiwan’s HTC, and China’s ZTE (ZTE is focused on mass producing budget phones) will make Nokia’s planned recovery extremely difficult. 

Just last year Nokia was still the top cellphone maker, but a year later, 10,000 Nokia employees will suffer because Nokia was unable compose a business model to keep itself relevant.

Source: businessinsder.com
Reference: reuters.com