Nokia May Cut up to 14% of Workforce

After a slew of bad years, Nokia still hasn’t found their footing yet. Once one of the dominant handset and wireless hardware firms, the Finnish firm has struggled in the changing landscape. 2 years after dumping their Lumia and handset business on Microsoft, the company looks to be cutting more of its staff. The cuts come as part of the massive $16.6 billion Alcatel-Lucent acquisition, with up to 14% of staff from both firms being cut.

According to the source, Nokia is set to cut 10,000 to 15,000 jobs in total out of their global workforce of 104,000. The cuts come as part of the $1 billion in cuts due to the overlap between Nokia and Alcatel-Lucent. These cuts will occur in over 30 countries but will heavily impact Germany and France but Finland will be the hardest hit. This comes as the multinational refocuses their attention away from the mobile device and infrastructure market and more into their telecommunications side of their business.

In order to find more growth, Nokia is turning to software and service contracts as they are generally more lucrative. What this all means for future Nokia handsets, their supposed mobile comeback and other hardware ventures like the OZO Camera remains to be seen. I for one hope the company re-enters the smartphone market.

Sony Slashes TV and Smartphone Lines

Reuters reports that Sony is to cut its losses and slim down its product line.

Sony has been losing money in the last few years, largely due to the decline of its TV and smartphone businesses – two businesses that have suffered thanks to Samsung and Apple’s success.

They say that they’re going to put their all into the PlayStation and image sensor business – two of the most successful and profitable components of Sony. The PlayStation has been performing incredibly well, with the PS4 beating its rivals, Microsoft’s Xbox One and Nintendo’s Wii U, by a significant margin. As for the image sensor business, Apple uses Sony sensors in their iPhones, the recent success of which is no doubt helping Sony, which is bizarre, considering Sony’s smartphone business is at a slump thanks to Apple.

Sony’s executives have said that they don’t care whether the changes shrink their business – all they’re after is profits to keep things moving forward.

“We’re not aiming for size or market share but better profits,” – Hiroki Totoki, Chief of Sony’s Mobile business.

Apple pretty much saved itself from oblivion in 1997 by doing the same thing, but obviously on an extreme scale. Let’s hope Sony never arrives at that position.

Source: Reuters