Nokia Networks, the infrastructure arm of Nokia is taking strong measures to reduce costs, improve profitability, and further strengthen its leadership position in the mobile infrastructure business.
The planned measures include focusing of research and development programs, a reduction of approximately 1800 in the total number of employees, and fine tuning of the Nokia Networks organisation to improve efficiency and effectiveness.
These decisions were taken against the backdrop of the market guidance given by the Company on 11 March that Nokia Networks would post a substantial loss for the first quarter of 2003, as well as general market conditions in the network infrastructure business.
Up to 1100 of the 1800 planned personnel reductions will be in Finland, while the remainder will be divided among other countries. The reductions will be made in R&D, operations, sales and marketing and in support functions.
The focusing of R&D includes a review of costs, scope, timing and number of programs and reducing the number of product configurations in light of the current customer and business situation. The target is to ensure the market, product and architectural leadership position in the GSM, EDGE and WCDMA markets while further increasing the focus and efficiency of R&D activities.
"We are determined to continue with our leadership strategy, targeting leadership position in mobile networks. The measures outlined today support this objective", says Sari Baldauf, President, Nokia Networks. Together with our relentless focus on customer needs and operational efficiency they will enable a sustainable and profitable business for the future".
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