Nokia slashes 1,700 jobs due to "pruned" demand
By Laura June 
posted Mar 17th 2009 11:34AM
posted Mar 17th 2009 11:34AM
Finland-based Nokia has just announced that they will cut 1,700 jobs in the corporate development and global functions departments. These cuts will equal about 1 percent of Nokia's entire workforce, and are more than double in number than earlier reports suggested. The company says that the cuts are being driven by "pruned" worldwide demand for its products. Shares of its stock fell 2.6 percent in Helsinki trading after the announcement, while our hopes and dreams fell just 1 percent. Onward and upward, dear Nokia!
Casualties of the iPhone...
Nokia, the demand is there. You just don't know how to hold it.
Yeah. There's no recession guys, it's all the iPhone! Move along.
Yeah nothing to do with people having less money to spend and seeing a phone as an unnecessary luxury as long as their current one continues working...
I would laugh so hard if Steve Jobs came on stage today and announce "We have decided to cancel our development of the iPhone, forever."
Yeah, there's a lot of people in India deliberating over whether to get an iPhone over a Nokia 1110.
oh noes! I thought Nokia was crappy-economy-proof...
I don't know about Nokia's standing, but generalyl speaking, firing people in this environment doesn't necessarily mean they're in dire shape.
They can easily ride the firing wave and shed a couple of pounds, make themselves leaner to maintain or increase their levels of profitability....
HAHAH!!!! Love the Photo " Firing people "
Funny.
Anyways I do think that the Iphone is responsible!
Now if only the Iphone could give us the SIMPLE features that even the cheapest phones have now.
Apple is working backwards.
They give you the nice complicated stuff first then the simple Video, MMS, Copy and paste all come way later so they can say " Hey check out this new feature we just allowed you to have" and we go Yeh !!! Woohooo you're the best apple!!!!
Psssssh!!!
I hate apple for this.
Its a 1% decrease..... Which sucks because they employ alot of people but theyre cutting a small percentage of their company. Sounds like house cleaning instead of down sizing to me.....
I wouldn't say that the appeal of Nokia's products are waning. I'd say their appeal is becoming more selective.
Tombstone will read "death by iPhone"
Hopefully that iphone will kill you soon.
I thought it read........
Douche by iPhone.
Nokia was recession proof until they began to unload cheap / junk phones on the world consumer market at inflated prices.
They relied on their good name and brand to support rolling out cheap phones at high prices to increase profits at the expense of their good name and brand. So be it
For example? Which "cheap / junk phone" is offered at "inflated prices" by Nokia?
Laura,
How did you do the "florals" on the Nokia logo?
Blore40 - this logo looks like a si scott design: http://www.siscottstudio.com/
I bet if you add up the salaries of all the people fired, that it doesn't equal half that of one of Nokia's executives.
dude that sucks..
In trouble times nokia is still the leader in smartphones.
RIM and Apple should be worried more.
Haha, Nokia own more than 40% of the mobile phone market, hardly any calls for death by iphone, people shouldn't get over themselves, Nokia make good phones and Iphone is brilliant end of.
You can't really blame a company for downsizing workers that it doesn't need and are not helping the bottom line. A company will employ exactly the number of people necessary to meet their needs and if they end up selling less units or having a decline in their buisiness in general then there's no point in keeping the payroll at its higher number.
It could be competition from other phones but it's probably just as much (or more) the world economy. They're hurting just like the rest of the companies in the world and if cutting employees is the only way for them to keep their solvency then it's for the better in the long run. Yeah, it sucks, but really it's not that they're doing this just for the hell of it, it's economic reality.
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