Nokia slashes 18 percent of workforce in second quarter 2012

Telecom Lead India: Mobile phone major Nokia has slashed
18 percent of its workforce in the second quarter of 2012.

It personnel decreased to 113,562 in Q2 2012 from 138,634
in Q2 2011 and 130,050 in Q4 2011.

Nokia said the average number of employees during the
period from January to June 2012 was 120,309, of which the average number of
employees at Location & Commerce and Nokia Siemens Networks was 6,573 and
67,624 respectively.

At June 30, 2012, Nokia employed 113,562 people (138,634
people at June 30, 2011), of which 6,624 were employed by Location &
Commerce (7,292 people at June 30, 2011) and 63,328 were employed by Nokia
Siemens Networks (74,887 people at June 30, 2011).

In connection with the implementation of its strategy
outlined in February 2011, Nokia has announced a number of changes to our
operations affecting personnel.

Recently, Nokia announced plans to reduce up to 10 000
positions globally by the end of 2013.

We are executing with urgency on our restructuring
program.  We are disposing of non-core assets like Vertu. We are
taking the necessary steps to restructure the operations of the company, which
included the announcement of a new program on June 14. Faster than anticipated,
we have already negotiated the closure of the Ulm, Germany R&D site, and
the negotiations about the planned closure of our factory in Salo, Finland are
proceeding in a collaborative spirit,” said Stephen Elop, CEO of Nokia.

In the second quarter of 2012, Nokia recognized
restructuring charges and other associated items of EUR 108 million related to
our restructuring activities in Devices & Services.

By the end of the second quarter 2012, Nokia had recorded
cumulative Devices & Services restructuring charges of approximately EUR
1.0 billion.

In total, Nokia expects cumulative Devices & Services
restructuring charges of approximately EUR 1.8 billion before the end of

From the third quarter 2012 onwards, Nokia expects
Devices & Services restructuring related cash outflows to be approximately
EUR 500 million in 2012 and approximately EUR 500 million in 2013. Of the total
expected charges relating to restructuring activities of EUR 1.8 billion, Nokia
expect Devices & Services non-cash charges to be approximately EUR 200

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