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Thursday, 21 October 2010 12:47

Nokia’s Q3 Profit Beats Estimates, Company Plans To Cut 1,800 Jobs

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Nokia this morning reported a third-quarter profit that handily beat analysts’ estimates. The company also said it would cut 1,800 jobs worldwide, sending shares soaring.

In the first results since the

company named Stephen Elop CEO, Nokia reported net income of 529 million euros, from a loss of 559 million euros a year earlier. Sales rose (again) to 10.3 billion euros from 9.81 billion euros, and the company shipped some 110.4 million devices.

In a separate statement, Nokia said it will henceforth focus solely on the Qt framework framework and support for HTML5. Nokia says the decision to focus on Qt as the sole development framework will ensure that apps will continue to be compatible with future evolutions of Symbian as well as upcoming MeeGo products.

Nokia also announced that it will “streamline operations” in product creation in Nokia’s Symbian Smartphones organization, as well as Nokia’s Services organization and certain corporate functions. The plans are expected to result in a reduction of up to 1,800 employees globally.

In Symbian Smartphones, Nokia says it plans to increase responsiveness to consumer demands and reduce time to market:

This includes expanding the use of common tools for application development, streamlining software development, simplifying and consolidating operations and placing greater focus on adding value to consumers. The changes target increased competitiveness and support building an attractive and sustainable platform for application developers.

In addition, the company’s Services organization will henceforth be focused on delivering an integrated Ovi experience across its full range of devices in an effort to provide more compelling Ovi services to consumers.

As certain activities are planned to be discontinued and integrated, Nokia says it will also cut certain corporate functions and corporate research activities.


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Authors: Robin Wauters

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