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TOMORROW'S WORLD
27 Apr 2011
NOKIA TO SHED 7,000 STAFF AS PART OF REORGANISATION

Mobile phone manufacturer Nokia has announced it will shed 7,000 jobs as part of a plan to refocus the company on smartphones.

The firm said 4,000 jobs worldwide would be cut - including a total of 700 jobs from Nokia's UK sites.

Nokia will also transfer a further 3,000 employees to outsourcing and consultancy group Accenture, which will take over Nokia's Symbian software product.

The plan will take effect from 2012.

Nokia is hoping to increase its capacity for smartphone development.

The firm recently confirmed a deal with Microsoft to jointly develop smartphone technology.

Under the terms of that deal, Nokia agreed to start using the Microsoft's operating system on its smartphones instead of its own Symbian platform.

"With this new focus, we also will face reductions in our workforce," said Stephen Elop, Nokia president.

"This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programmes for the talented people of Nokia."

Nokia's response to the smartphone threat from competitors such as Apple's iPhone and phones using Google's Android system has been long been a key investor concern.

Source: bbc.co.uk

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