About to end their contract with Microsoft and following their merger with Alcatel-Lucent, Nokia hints that the company is planing to reconstruct their global business strategy

Nokia – Alcatel deal: 14% job cut to save money

Recently, reliable reports from Reuters and Bloomberg have unveiled that, Nokia is planning to save more thang $1 billion annually following its merger with Alcatel – the networking hardware company. According to that, the company will cut off 10,000 to 15,000 current staff worldwide. This is equivalent to 14% of Nokia workforce (they are hiring around 104,000 employees globally). Exclusively in their hometown, the Finnish giant is believe to be firing up to 1,300 out of 6,850 current people.

Nokia spokesperson claimed that they are targeting to save up to 900 million euros ($1.02 billion) of operation cost with this clearance by 2018, in agreement with Alcatel deal. However, the spokesperson refuse to give any further information or comment about this issue. In a statement, Nokia CEO Rajiv said that they will be meeting with workers from over 30 countries in the coming weeks. The cut will also help to support Nokia in competing with other rivals in the intense market of 2016, especially Huawei, reported Bloomberg.

“It’s too early to discuss any global reduction figure as we are only now starting the country-specific processes, and these will proceed according to local legislation and practices,” Nokia said. Still, these reports are definitely not good news for current staff working at Nokia anywhere in the world.

Nokia – Alcatel deal: challenge be waiting

Much as we are expecting the come back of this giant, we can’t stop our curiosity in how the company will be planning their future strategy, according to Nokia – Alcatel deal. No matter what decision they are about to make, we do hope it would be a wise move. As the smartphone market in 2016 will be more intense than ever, with the fast growing of Chinese brands like Huawei, and the non stop development of other big brands like Apple, Samsung etc, Nokia will surely be facing a lot of challenge. (Source: Bloomberg and Reuters)