There was a time when the name Nokia was synonymous with the mobile phone world, although these days you’ll hardly hear it mentioned among top dogs. Now, Nokia’s CEO Stephen Elop broke some bad news for employees and investors alike, including new layoffs, closing of the company’s only plant and higher than expected Q2 2012 loss.
In an attempt to save itself, the company will cut 10,000 jobs worldwide, including the 3,700 from the its only and soon-to-be-closed plant in Salo, Finland. This brings the total number of layoffs to 40,000 since Elop was appointed CEO in 2010 - every third worker has since gotten the boot.
Nokia has lost serious ground to Apple and Samsung, and rightly so since it really has nothing to compare to, let alone lock horns, their flagship products. Nokia screwed up bad when it comes to its smartphone strategy, but it’s apparently losing in the cheaper, basic phone markets as well.
This brought about a second profit warning in only nine weeks and a warning of a worse than expected loss in Q2 2012. Although Nokia looked to its Lumia phones in hope of better times, the sales weren’t as hoped.
The company seems to be in dire need of a miracle, as the company’s stock has plummeted 70+ percent since it made a switch to Windows Mobile in February. Analysts haven’t been overly kind with their outlooks, but seem to agree that the ongoing restructuring will, if not stop, then at least break the fall somewhat.