Finnish mobile manufacturing giant on June 14 announced some major changes to its business. The new strategy in its business includes 10,000 additional job cuts along with a broad management shake up.
Nokia has decided to proceed with the major changes as it has faced a cut in its earnings for the third time in a little over a year. The Finnish handset maker has been facing major competition from the other giants like Apple Inc’s iPhone and even the other cheaper devices that run on Google’s Android software.
The company even confessed that the competition in the industry affected the business to somewhat a greater extent than earlier expected. Nokia has also warned that the main mobile devices unit will be larger than it had earlier indicated.
The additional 10,000 jobs will be cut by the end of next year and will also help to achieve another €1.6 billion in cost reductions by the year 2013. Stephen Elop, the Chief executive of Nokia said, “These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength”. Nokia has also announced broad changes to its management line up. The restructuring changes will be made after the company faced a downfall in sales.