Nokia layoffs involve China: Some R&D personnel may leave

Recently, Nokia, which has been affected by poor performance, has started layoffs again and hopes to help save itself through throttling while Windows Phone (hereinafter referred to as WP) expands its territory. It is reported that after the CEO confirmed by Stephen Elop a new round of layoffs, plans to lay off 10,000 people by 2013. It is reported that the layoffs even involve Nokia executives, and three executives will leave. The news caused Nokia's share price to drop by about 10%. According to Southern Reporters, the layoffs will also involve Nokia China. It coincides with the listing of Nokia's new flagship model Lumia 900 in the country. The success of the aircraft will be a battle against China and even the world.

New layoff plans involve 10,000 people

Elop announced that in order to save 3 billion euros in expenditure by the end of 2013, the company will lay off 10,000 employees. Prior to this, Nokia had laid off 4,000 people. It is reported that the layoffs are still mainly related to the R & D team. With only a handful of R&D staff at Symbian's headquarters in Finland, Nokia began to move to the Qt R&D team. Previously, in the transition from Nokia to the mobile Internet, the Qt development platform was once placed high on Nokia due to its advanced nature and openness. Nokia has also publicly stated that the vast majority of application development will be based on the Qt platform.

However, with the close cooperation between Nokia and Microsoft's WP, the Qt platform, like the U IQ platform used by Sony Ericsson in the past, has not been able to keep up with the trend. Downsizing has become a reasonable matter. . It is understood that most of the previous work of the Qt platform is based on the support of the Meego system, and Nokia has confirmed that it will not release the system's products after N9.

In addition to layoffs, Nokia has been the main high-end luxury mobile phone brand Vertu has also been changed. Nokia said that it has reached an agreement with the European private equity fund EQTVI to sell Vertu luxury mobile phone brands, bidding for about 200 million euros. It is expected that the entire transaction will be completed in the second half of this year.

It is worth noting that Nokia's layoffs have not always involved China or had little impact on the Chinese team. On the contrary, Nokia has consciously moved some R&D parts to lower-cost China and even recruited more R&D personnel. However, Nandu reporters learned from reliable sources that the five-digit layoffs will also affect China. At least some R&D personnel in China will leave the company because of the re-adjustment of the R&D system.

Market value shrinks by more than 90% in 5 years

Interestingly, according to the headquarters of Nokia headquarters, Helsinki, Finland, local media reported that after announcement of layoffs, Elop was escorted home by two security guards on the same day. The report was more vividly accompanied by pictures to express potential "danger."

However, for Elop, the professional manager who rescues Nokia from fire and water, the real danger comes from investors' reactions. Last Thursday, Nokia even issued a warning that its mobile phone business fell far faster than expected two months ago. This led to Nokia's share price listed in the United States fell 16% to $ 2.35 per share the same day, creating a new low since 1996. Later, boosted by the overall increase in the broader market, Nokia's stock price rebounded to 2.48 US dollars per share on Friday.

However, the stock price decline has caused Nokia's market value to shrink to $ 9.3 billion, compared to Apple's first-generation iPhone than the company's iPhone in 2007, Nokia's market value evaporated more than 90%.

At the same time, rating agency Moody's downgraded Nokia’s stock’s credit rating to “junk” status due to “not optimistic about Nokia’s cash level and sales of new Windows phones”. The other two rating agencies, Standard & Poor's and Fitch, gave a similar rating on Nokia stock as early as April this year.

Product is still the key

However, in the face of drastic decline in market value, poor performance and tens of thousands of layoffs, there are institutions that support the reason is "long pain is worse than short-term pain." Oppenheimer analysts believe that Nokia will move from a low to a virtuous cycle, and layoffs will bring a buffer period for Nokia. Citigroup upgraded Nokia's stock from "sell" to "flat," saying that it is necessary for Nokia to undergo "severe pain." Relying on a series of measures to increase revenue and reduce expenditure, it is believed that Nokia can return to the “protected capital” level in the third quarter of this year.

As for the Chinese part, Nokia has significantly improved the speed of its market for mobile phones. In early June, Nokia announced that the new flagship model Lum ia900 had accepted the booking and announced that the product was officially launched in mainland China in the full-scale distribution market in less than a week. From the global release to the official listing, the overall speed is significantly faster than the previous products.

Globally, Nokia in the “quagmire” also put Bao on Microsoft's next-generation mobile phone operating system Windows Phone 8 Apollo. After all, throttling can only solve the trapped moment, and more importantly, rely on the product to "speak." Wall Street analysts even believe that WindowsPhone8 will ultimately determine whether Nokia can survive.

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