“Nokia plans to cut one in five jobs at its global cellphone business as it loses market share to rivals Apple and Samsung and burns through cash, raising new fears over its future,” Tarmo Virki reports for Reuters.
“In a second profit warning in nine weeks, Nokia said on Thursday that its phone business would post a deeper-than-expected loss in the second quarter due to tougher competition,” Virki reports. “Once the world’s dominant mobile phone provider, Nokia was wrongfooted by the rise of smartphones and is struggling to keep up with Apple, Samsumg and Google. It is also losing market share in cheaper, more basic phones.”
“Chief Executive Stephen Elop is placing hopes of a turnaround on a new range of smartphones called Lumia, which use largely untried Microsoft Corp software. But Lumia sales have so far been slow, disappointing investors,” Virki reports. “Shares in Finland-based Nokia were down 10.5 percent to 1.99 euros, below the psychologically important 2 euros mark last, not seen since 1996. The stock has crashed more than 70 percent since it announced the switch to Microsoft’s software in February 2011.”
Virki reports, “The job cuts, which include the closure of Nokia’s only plant in Finland, bring total planned cuts at the group since Elop took over as chief executive in 2010 to more than 40,000… Nokia also said it would sell luxury phone business Vertu to venture firm EQT and revamp its management team.”
Read more in the full article here.
MacDailyNews Take: Ah, Microsoft’s Midas touch. Good luck to the affected employees.
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