Nokia set to cut 1,800 staff

Nokia has announced its third quarter 2010 results, which have exceeded expectations, but failed to make the industry excited.

Nokia has also announced it is set to reduce its global workforce by up to 1,800 people to simplify operations in product creation in Nokia’s Symbian Smartphones organisation, as well as Nokia’s Services organisation and certain corporate functions.

Operating profit overall was Euro 403 million, versus the third quarter 2009 loss of Euro 426 million, up quarter on quarter by 37% from Euro 295 million in the second quarter this year.

Devices and Services operating profit was up 3% year on year for the quarter, to Euro 807 million, and up 26% quarter on quarter, however operating margin was down to 11.3%, from 11.4% on the year-ago quarter.

Nokia’s total mobile device volumes were 110.4 million units for the quarter, up 2% year on year, but down 1% sequentially. Smartphones and mobile computers hit 26.5 million units, up 61% year on year and 10% sequentially.

Nokia now expects its mobile device volume marketshare to be slightly down in 2010, compared to 2009. It earlier targeted its mobile device volume marketshare to be flat in 2010, compared to 2009.

Stephen Elop, Nokia CEO of five weeks, stated: “Our company faces a remarkably disruptive time in the industry, with recent results demonstrating that we must reassess our role in and our approach to this industry.”

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