The news is around that Nokia has planned to cut down more than 3500 jobs all over the world by 2012. It is regarded as a move by the company to reduce its costs considerably which can amount to a whopping $1.5 billion dollars a year.
The environment of the telecom industry had never been this tougher as it is now with so many players giving a tough time to the biggies such as Nokia. Besides the cutting down of employees the company may also restructure its plans and strategies for the subcontinent.
On October 3 the Board of Nokia is set to meet and evaluate their final strategy and stand on Indian markets. As per reports it has been estimated that the board is meeting to decide among three candidates for the post of MD in India.
The company however might consolidate on the midlevel management in the administrative, sales as well as the marketing departments. However there has been no such report for layoff for the company in the country. The major competitor Samsung India has given a tough competition to the company and eaten a large chunk of the company’s market share in the recent times.
The latest data and statistics have clearly indicated a flat growth for the company this year with the revenues being almost the same at Rs.12,929 crores as a against Rs.12,900 crores last year. On the other hand Samsung recorded a 21% growth in the FY11.
Bell the Bull says: The announcement of layoff from the company clearly indicates the strategy of reducing the costs and contributing more to the revenues