Nokia cuts IT team as cost-cutting process ends

Jan 17, 2013
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Nokia will make 300 staff redundant and outsource elements of its IT organization, the Finnish company has revealed, as it continues to make cost-cutting measures across the business. Describing the change - which will also see Nokia transfer up to 820 existing employees to external tech consultancies - as "to align IT function with its business focus," Nokia expects the biggest job losses or changes to be in Finland.

Nonetheless, there will be impact from the "global" change around the world. Those losing jobs will be offered a place in Nokia's Bridge program, which has already seen numerous start-ups form as ex-Nokians use their technical skills to explore niche projects.

As for the job transfers, up to 820 staff will be shifted - along with their job roles - to HCL Technologies and TATA Consultancy Services. "Nokia believes these changes will increase operational efficiency and reduce operating costs," the company said today in a statement, "creating an IT organization appropriate for Nokia's current size and scope."

Still, the end is in sight for the upheaval at the firm. Nokia says that these are "the last anticipated reductions" from the June 2012 strategy plan, its broad-sweeping attempt to save cash and realign its business in a new, challenger role.

Those changes look to be hitting the spot, too, or at least contributing to a turnaround of sorts. Earlier this month, Nokia revealed it was expecting better-than-predicted performance in Q4 2012, with stronger phone sales and a swifter move toward more efficient operations.


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