Nokia says it will shed 7,000 jobs as it strips back research costs

Steve Dinneen
Follow Steve
NOKIA, formerly the world’s undisputed mobile heavyweight, will slash 7,000 jobs as it prepares for a new dawn as a smaller, humbler company.

The Finnish firm plans to cut €1bn (£890m) from its research and development budget by outsourcing its soon-to-be-axed Symbian operating system division, along with its 3,000 staff, and laying off a further 4,000 workers.

Accenture will take over Symbian duties and play a role in supporting future releases running Microsoft’s Windows platform.

Nokia’s chief executive Stephen Elop, a former Microsoft employee, signalled a radical change of direction for the company when he signed an agreement to use Windows Phone 7 as Nokia’s “primary” software.

His task now is to plug the leak in Nokia’s market-share, particularly in the smartphone market. He yesterday admitted: “The competitive environment has changed rapidly.”