Nokia To Reorganize, Job Cuts Likely

Finland-based communications company Nokia said it would slash 90 positions from its Enterprise Solutions Business Group and possibly as many as 200 in its Networks business group.

January 31, 2006

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MANHASSET, N.Y. — Hit by weakened profits and a changing global business climate, Finland-based communications company Nokia said Tuesday (Jan. 31) it plans to redeploy hundreds of workers in its Enterprise Solutions Business and Networks business groups, possibly eliminating many positions.

Nokia said its Networks business group would increase R&D in emerging markets as wireless infrastructure is expanded but likely decrease R&D investment in Finland. A company official said that 200 from its Networks group would be affected though added the company hopes to find positions elsewhere in Nokia for many of the displaced workers.

In addition, Nokia said it would eliminate 90 positions in its Enterprise Solutions Business Group. The company said it would offer voluntary severance and the possibility for redeployment within the company where feasible.

At the end of 2005, Nokia employed 58,874 people globally, of whom 23,485 worked in Finland. Nokia employed 13,237 research and development personnel in Finland at the end of 2005.

In its fourth quarter, Nokia posted higher sales but lower profits as margins fell from lower handset prices. The company projects moderate sales growth for 2006, as much of the increase comes from low-end phones in developing countries.

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