Troubled cell phone manufacturer Nokia – for many years the acknowledged leader in the mobile phone market – is to cut an additional 3 500 jobs on top of the 7 000 it announced earlier this year.
The cuts will come primarily in the form of a factory in Romania that will be shut down, with further jobs slashed in the location division.
Cutting the location division represents Nokia’s focus on its core strategy – developing smartphones within the Windows phone ecosystem, comments Craig Cartier, ICT analyst for Frost & Sullivan. However, he says, the company will face more challenges in attempting to realise that strategy.
While Nokia has put its eggs in the Microsoft basket, its Redmond-based partner has not returned the favour, Cartier says.
Microsoft has not slowed down to wait for Nokia, with Nokia noticeably abset from the list of AT&T launch partners for the Mango release of Windows Phone 7.
While the Microsoft partnership was intended to remedy Nokia’s historical battle to feature in the US market, it seems this is not happening yet – and there is doubt that Nokia will be able to bring Windows Phone devices to market before the holiday season.
Cartier believes that, if it doesn’t succeed in this goal, these job cuts may not be the last from Nokia.