Nokia optimizing their strategy and laying off 10 000 employees

Nokia Connecting People
Nokia Connecting People

 

Nokia’s new set of measures, with which the company is planning on returning on the profitable way, has just been revealed and there are certainly going to be a lot of changes made within the company. The Finns are planning on lowering their operational expenses, but in the same time they’re going to remain focus on both the smartphones and their budget devices, placing an accent on their location-based services. In order to cut their expenses, Nokia are going to have to shut down the research facilities in Ulm, Germany and Burnaby, Canada, as well as their factory in Salo, Finland, though the research center there is going to keep on working. The company is also going to improve their marketing strategy, especially on some key markets, optimize their IT, corporate and business functions and perhaps even sells some parts of Nokia, which aren’t vital for the development of their mobile business. This is expected to reduce the expenses of their Devices & Services division by €3 billion per year by the end of 2013.

Nokia Lumia series
Nokia Lumia series

 

Nokia’s strategy for the smartphone market is going to remain the same – to offer Lumia devices in different price ranges and to differentiate themselves from other Windows Phone manufacturers by adding more and more technologies to their devices, using new materials in their manufacturing and, as we already said, including unique location-based services. The company is going to keep on investing a lot in the last category, hoping to make their device more appealing than their competitors’ by featuring things such as (better) navigation and a visual search feature. The company’s location-based technologies are also going to reach out to other branches of the industry, which is going to generate higher profits for the Finns.

 

Series 40
Series 40

 

On the other hand, their strategy, concerning feature phones (which are actually a big part of their mobile business), is going to require focusing on the development of Series 40 and Series 30 devices and investing in key technologies, such as Nokia Browser. The company has said, that the initial results of these investments are visible in the latest line of touchscreen Asha devices, so we can certainly expect a lot of additional development in this budget segment in the recent future.

Some serious changes have also been made to the the company’s managing team – three of the highest level managers, who were in charge for Nokia’s Marketing and PR, Mobile Phones division and Markets division, are no longer going to be part of this team. Still, they’re going to remain as company advisers. B. A.

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