BERLIN - Nokia cellular phone manufacturer leader of the world, said Wednesday that it would slash about 7 000 jobs in a more profound than expected reductions in spending program.
12% Reduction in the market of the global work of Finnish society will help operating costs trim 1 billion euros, or $ 1.47 billion, or a reduction of 17%, at the end of 2012. Analysts had expected job cuts of between 5,000 and 6,000.
Stephen Elop, the former leader of Microsoft who becomes Chief Executive Nokia in September, said that the cuts and reorganization are necessary to prepare for the Nokia for its partnership with Microsoft. Nokia provides finally gradually operating system Symbian, as it rolls on smartphones running Microsoft Windows software phone next year.
"With this new focus, we also must face reductions in our labour market," said Mr. Elop. "It is a difficult reality, and we work closely with our partners and employees to identify programs for long-term reuse."
Nokia said in a statement that the reductions would be achieved by eliminating 4,000 jobs, mostly in England, the Denmark and the Finland and the transfer of 3,000 employees responsible for Accenture's Symbian operating systemconsultant in global technology companies.
The company, which is based in Espoo, Finland, employed 59,080 in its business of cellular telephony at the end of 2010. The figure excludes the Nokia Siemens Networks, its joint-venture, personnel network and Navteq, a U.S. company data mapping it is also the owner.
Nokia, has produced 108.5 million mobile phones last year, provision of 32 per cent of the world market, but the company this year ceded lead in cellular telephony revenues to Apple, the manufacturer of the iPhone, Strategy Analyticsa research firm.
In addition to the job cuts, which will become official following negotiations with the representatives of the hand of work, Nokia said that it expected strengthen its research and development division so that each site has a mission and a clear role. Nokia has mobile phone R & D sites in Finland, China, India, Germany, England, Denmark and San Diego.
Some sites will increase, others will diminish and some will be closed due to the reorganization, Nokia said, without providing further details.
"This move was widely anticipated and follows the Nokia need to reduce its cost structure," said Michael Schroder, an analyst from FIM Bank, a private bank in Helsinki."
Failure of Nokia to capitalize on the smartphone boom has cost of the market share of Finnish society and prestige as the Centre of gravity in its industry moved equipment and communication software and applications.
The boom is still going strong, said Ericsson, the world leader in wireless network equipment, on Wednesday, as it reported that demand for mobile broadband lifted its own sales of 17 percent in the first quarter from a year earlier and 53 billion SEK, is $ 8.7 billion.
Profit at Ericsson, based in Stockholm, more than tripled to 4.1 billion crowns of 1.3 billion kroner a year earlier, which the company attributed to the reduction of costs and greater profitability in its networks business.
Most of the demand came from the United States and the Canada, said Ericsson, where wireless operators such as Verizon Wireless, AT & T and Rogers Communications are expanding the capacity of their networks 3 G and installing again, fasternetworks based on a technology called long term evolution to manage traffic.
Ericsson, said the level of data traffic on the global mobile networks in the world, has doubled in 2010 from 2009 and will continue to double each year for the next years.
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