Nokia to shed 7,000 job, outsources Symbian

Under the planned a strategic collaboration with Accenture, a global management consulting, technology services and outsourcing company, Nokia would outsource its Symbian software activities and transition about 3,000 employees to Accenture. At the same time, Accenture would provide mobility software services to Nokia for future smartphones. The collaboration, which is subject to final agreement, calls for Accenture to provide Symbian-based software development and support services. The companies expect completion of the final agreement during summer 2011, with the transition of employees completed by the end of the year. Transitioning employees, located in China, Finland, India, United Kingdom and the United States, will initially work on Symbian software activities for Nokia. Over time, Accenture and Nokia will seek opportunities to retrain and redeploy transitioned employees, the companies said.

According to Nokia, the collaboration also includes plans for Accenture to provide mobility software, business and operational services around the Windows Phone platform to Nokia and other ecosystem participants. Under the proposed agreement, Accenture would become a preferred partner for Nokia’s smartphone development activities, as well as a preferred provider of services.

In addition, Nokia also plans to reduce its global workforce by about 4,000 employees by the end of 2012, with the majority of reductions in Denmark, Finland and the UK. In accordance with country-by-country legal requirements, discussions with employee representatives started yesterday. All employees affected by the reduction plans can stay on the Nokia payroll through the end of 2011. Nokia expects personnel reductions to occur in phases until the end of 2012, linked to the roll-out of Nokia’s planned product and services portfolio. During this period, Nokia intends to ramp up its capacity for the development of Nokia smartphones based on the Windows Phone platform, the company’s broad range of mobile phones and its services portfolio.

Nokia said it will launch a comprehensive social responsibility program for employees and the communities likely to be affected by the personnel reductions. The program will be led locally, with local partners and stakeholders, and senior management support.

Nokia also plans to consolidate the company’s research and product development sites so that each site has a clear role and mission. Nokia expects the expansion of some sites and the contraction or closure of others.

"At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions," said Stephen Elop, Nokia president and CEO. "However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia."