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

 
Steve Dinneen
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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.”