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Nokia loses $3 billion in last 6 months, cuts 10,000 more jobs, sells Vertu

By Aldo Panessidi

Mobile phone maker Nokia announced this week that it plans to restructure. Nokia is trying to stay in business with job cuts, sale of its Vertu luxury product line and reorganization at the top of the company. With $1.7 billion lost in the first three months of this year and a $1.2 billion in 4Q 2011, the company is on a sad slide.

Nokia loses $3 billion in last 6 months, cuts 10,000 more jobs, sells Vertu

The 10,000 job cuts add to last year’s workforce reduction of 14,000 employees. This year Nokia will shut down research and development facilities in Ulm, Germany, and Burnaby, Canada, and a manufacturing facility in Salo, Finland. It also plans to shuffle senior leadership and acquire Swedish software firm Scalado AB.

Nokia’s latest strategy shows an increasing reliance on the potential for success with Windows Phone. The Scalado AB is a mobile image company. Its acquisition should strengthen Nokia’s Windows Phone service portfolio for the Nokia Lumia 900, and the remaining Lumia line of busienss.  In the press release announcing the restructuring, Nokia said it acquired Scalado AB to beef up its "imaging experience" for its line of Lumia devices.

Nokia said making the cuts and the restructuring will cost it about $1.2 billion but will reduce costs by about $2 billion by next year. It also lowered second-quarter earnings expectations.

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