News has emerged that struggling mobile device manufacturer Nokia announced plans to cut an additional 3500 jobs, in addition to its 7000 job cut announced earlier this year. The cuts come primarily in the form of a factory in Romania that will be shut down, with further jobs slashed in the location division.
Craig Cartier, Analyst for ICT practice at Frost & Sullivan, commented, “Cutting the location division does represent further Nokia focus on its core strategy — developing smartphones within the Windows phone ecosystem. Unfortunately for Nokia, this also represents further struggles to realise that strategy.
While Nokia has put its eggs in the Microsoft basket, its Redmond-based partner has not returned the favour. Microsoft has not slowed down to wait for Nokia, as just two weeks ago, USA mobile carrier AT&T announced its launch partners–HTC and Samsung–for the Mango release of Windows Phone 7; Nokia noticeably absent from that list.
Nokia, even at times of strength, has struggled in the US market, a problem the Microsoft partnership was supposed to remedy. For now, it seems like that remedy will remain only future hope, as this development brings into question whether the former leading phone manufacturer can, as promised, bring Windows Phone devices to market before the critical holiday sales period of 2011. If not, this announcement might not be the last of the job cuts we hear from Espoo.”