Finnish cellular phone manufacturer, Nokia (News - Alert) plans to downsize by over 1,000 IT jobs, mostly in Finland. Three hundred workers will be let go, and 820 will be transferred to work for strategic partners like HCL Technologies (News - Alert), based in India, and TATA Consultancy Services, based in Finland.
“Nokia outlined a range of planned changes today to streamline its IT organization,” the company revealed in a statement. “Nokia believes these changes will increase operational efficiency and reduce operating costs, creating an IT organization appropriate for Nokia's current size and scope.”
Although Nokia did report higher-than-expected Q4 sales of mobile phones, the company has struggled to keep up with Samsung and Apple (News - Alert) since switching over to the Windows platform. Still, sales of the Lumia 920 did pick up after the release of the Windows 8 operating system and after the company dropped the price point to $99 in 2012.
Most of the employees who will lose their jobs are based in Finland. Nokia has offered those employees financial support as well as a “comprehensive bridge support program.” This final round of layoffs completes Nokia’s streamlining plan, announced in June, which involved the layoff of 10,000 workers.
Nokia stock shot up in Q4 2012 after its Lumia 920 sold out in Germany after the release of Windows 8. However, until the company releases its Q4 results, no one is sure whether the company has been able to pull itself out of its nosedive.
According to Fox Business, Microsoft (News - Alert) has been in talks with Asustek about developing another smartphone to carry the Windows 8 operating system. Nokia, Huawei Technologies, Samsung and HTC Corp. are the companies currently manufacturing Windows 8 smartphones.
Microsoft has invested heavily in smartphones as Windows 8 sales have failed to meet expectations. Demand for smartphones rose 45 percent last year, while demand for PCs increased only 3.2 percent.
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