Nokia to axe 4,000 staff and transfer Symbian operations

Nokia is to axe 4,000 staff to cut costs and refocus the company on the development of Windows Phone 7 smartphones.

The majority of the cuts will take place by the end of 2012 in the UK, Finland and Denmark. The UK press office declined to give further details.

Nokia will also transfer its Symbian software development to Accenture, including 3,000 employees.

Nokia announced the cuts in a statement on Wednesday, stating that they will allow the business to align its global workforce and consolidate site operations.

"At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions," said Stephen Elop, Nokia president and chief executive.  

"However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programmes for the talented people of Nokia."

Despite repeated assertions that it will release Symbian phones for some time to come, Nokia effectively signalled the beginning of the end for the platform in February when it signed up with Microsoft to release Windows Phone 7 smartphones.

Meanwhile, Nokia said last week following a fall in profits that it will reduce its operating expenses by €1bn in 2013 in comparison to 2010.

Nokia also plans to consolidate the company's research and product development sites so that each has a clear role and mission. The handset firm expects the expansion of some sites and the contraction or closure of others.

Unsurprisingly, trade union Unite described Nokia's move as "another dark day for the British economy".

"It is not surprising that the company has decided to sneak out this very bad news in the week that the country's attention is focused on Friday's royal wedding," said Unite assistant general secretary Tony Burke.

"What is very disheartening is that mobile phones and their associated technology are one of the growth areas in the British economy, yet this still does not stop a successful company such as Nokia throwing people out of work."