Sign up for a new account or log in here:
The downward spiral continues for Nokia with the announcement that it will slash 10,000 jobs, estimated to be around 19% of its worldwide workforce, by the end of 2013 as part of drastic measures to change its fortunes.
The jobs cuts will save the firm €1.6 billion ($2bn) by the end of next year and will result in the closure of a handset factory in Salo, Finland with a loss of 3,700 jobs. It will also result in the closure of research and development centers in Ulm, Germany, and Burnaby, Canada.
The layoffs are a stark reminder of the Finnish phone maker's precarious position and its dramatic change from its 1990's dominant position as the undisputed global leader in mobile phones, due to a host of poor business decisions, serious mishaps with its Symbian OS and strong competition from rivals.
"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength," said Stephen Elop, Nokia's CEO. "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."
In addition to this, the company told investors that its second quarter ending June 30 is likely to reveal larger than expected losses as they continue to struggle against the likes of Apple and Samsung. It will follow a 29% decline in revenue in the first quarter, and the third quarter also looks bleak with the CEO warning investors that the transition to Microsoft's Windows Phone mobile OS will continue to hurt earnings.
"It is an unfortunate but necessary action to streamline the business to ensure that it has the best chance of competing," said Pete Cunningham of Canalys, a UK-based research firm when summing up the Finnish firm's announcement. "Apple and Samsung are really turning the thumbscrews on the rest of the market. Nokia is having to work very hard to make its Lumia handsets attractive due to the lack of traction that Windows Phone has in the market today."
Nokia also announced it intends to sell luxury phone maker Vertu to private equity group EQT for a reported €200 million ($251m) in a bid to further reduce costs.
The Nokia Lumia 710 has a 3.7-inch, WVGA (480 x 800 pixel) display. It sports a 5 megapixel camera and LED flash, and a loud and clear external speaker. Like most Windows Phone 7.5 devices, the Lumia 710 does not support microSD cards. The Nokia Lumia 710 is powered with a 1.4GHz Qualcomm processor and 512MB of RAM. The Windows Phone interface gets out of your way easily, and apps are quick to open more often than not.
The Nokia Lumia 800 measures a fairly compact 116.8mm x 61.2mm x 12.1mm (4.6in x 2.4in x .5in), it features 16GB of internal storage, but lacks a microSD memory card slot. The Nokia Lumia 800 runs on a single-core processor (1.4GHz). The Lumia 800 is capable of HSPA 14.4 3G data connections on the 900, 1900, and 2100MHz bands and also features Wi-Fi and Bluetooth support.
The Nokia Lumia 900 is 11.4mm thickness and weight 159g, in the front you can find the 4.3-inch ClearBlack AMOLED display and in the back the 8 megapixel camera and its LED flash. Since there are no seams or doors there is no way to access the 1830mAh battery or increase the phone's 16GB internal storage with a microSD card.
Get free exclusive content, learn about new features and breaking tech news.