Nokia's Multimedia Business Group will is preparing to axe an unspecified number of staff in a bid to streamline its global research and development activities.
The mobile giant stated that the total number of staff facing the axe will be decided after negotiations with employee representatives that aim to find alternative positions for as many employees as possible. While the cutbacks will be implemented globally, Germany and Finland will be the worst affected.
The belt-tightening reflects the firm?s recently disclosed aims to increase the efficiency of research and development work. It set itself the target of cutting R&D expenditure down to between 9 per cent and 10 per cent of its net sales by the end of 2006.
"Reducing personnel is always a very tough decision to make. However, the planned streamlining of our R&D network will enable us to grow our business in a profitable way without sacrificing future business potential," said Anssi Vanjoki, executive vice president, Multimedia, Nokia.
Vanjoki insisted that the firm?s multimedia strategy remains unchanged and will continue to focus on its smart imaging business.
The planned staff reductions are scheduled to ?materialise gradually during 2005?.
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