Nokia is looking to shed a further 1,700 jobs worldwide as sales slump by nineteen percent at the end of last year.
Finnish mobile 'phone giant Nokia has announced further job cuts as demand for consumer electronics continues to wane worldwide.
According to a report over on CNet
, the company is to lay off 1,700 jobs from its Devices and Markets unit and the Corporate Development Office, along with some global support staff in order to counter continuing reductions in turnover.
At the tail end of last year Nokia's overall sales had dropped nineteen percent, and the company expects this decline to continue through 2009 – with the expectation being a further ten percent drop in revenue by the end of the financial year. The latest round of job cuts is part of the company's plan to shave around $905 million from its annual costs by 2010, and follows other lay-offs and the closure of a research and development site earlier this year.
With the world still suffering under an economic slump, consumer spending on non-essential products and services – of which Nokia's most profitable lines of high-end mobile 'phones certainly count – has been pared down to a minimum. While this leaves more money for consumer to spend on essentials, it's a nightmare for tech companies founded on the premise that consumers will refresh their hardware every year or two – despite the existing equipment working just fine.
Even discounting the slowdown being experienced by all technology companies, Nokia is having a few problems: according to figures released by market research firm Garther, Nokia's share of the smartphone market dropped almost six percent between 2007 and 2008.
Do you have any suggestions for products you'd like to see from Nokia that would encourage you to upgrade your handset, or should the company diversify away from high-end smartphone handsets and try to make its money elsewhere? Share your thoughts over in the forums