Nokia announces new strategy, changes in management

According to a press release, Nokia will acquire world-class imaging specialists as well as all technologies and intellectual property from Scalado. The Lund site is planned to become a key site for Nokia’s imaging software for smartphones, in addition to Nokia’s existing locations in Espoo and Tampere, Finland. The transaction, which is subject to customary closing conditions, is expected to close during the third quarter of 2012. The terms of the agreement are confidential.

Separately, Nokia has appointed Juha Putkiranta as Executive Vice President of Operations; Timo Toikkanen as Executive Vice President of Mobile Phones, Chris Weber as Executive Vice President of sales and marketing; Tuula Rytila as Senior Vice President and Chief Marketing Officer, and Susan Sheehan as Senior Vice President of communications. Putkiranta, Toikkanen and Weber also will join the Nokia Leadership Team effective July 1, 2012.

Formerly, Putkiranta was Senior Vice President, Supply Chain, Weber was Senior Vice President Markets, Americas, and Toikkanen was Vice President, Business Development, Programs and Special Projects. Rytila, who will report to Weber, was formerly Senior Vice President of Portfolio and Business Management, and Sheehan, who reports to Elop, was Vice President of Communications.

Nokia also announced the following executives are stepping down from the Nokia Leadership Team effective June 30, 2012 to pursue other opportunities outside of Nokia: Jerri DeVard, Executive Vice President and Chief Marketing Officer; Mary McDowell, Executive Vice President of Mobile Phones; and Niklas Savander, Executive Vice President of Markets.

To further reduce operational costs, Nokia plans to rescale the company by additional staff reductions in Devices & Services, resulting in the closure of its facilities in Ulm, Germany and Burnaby, Canada, as well as the manufacturing facility in Salo, Finland. Research and Development efforts in Salo will continue, the company said.

Finally, Nokia has agreed terms to sell its subsidiary, Vertu, the global leader in luxury mobile phones, to EQT VI, part of a leading private equity group in Northern Europe. The comapny said this was the best option for the next step in Vertu’s journey of delivering excellence, enabling the brand to focus on increased opportunities for growth in the luxury category. Terms of the transaction, which is expected to close during the second half of 2012, were not disclosed. Nokia will retain a 10% minority shareholding in Vertu.