Nokia announced yesterday plans to align its global workforce to reduce its Devices & Services non-IFRS operating expenses by 1 billion euros. Part of its plans is a strategic collaboration in which Nokia would outsource its Symbian software activities and transition about 3,000 employees to Accenture. In addition, Nokia also plans to reduce its global workforce by about 4,000 employees by the end of 2012, with the majority of reductions in Denmark, Finland and the UK.
All employees affected by the reduction plans can stay on the Nokia payroll through the end of 2011. Nokia expects personnel reductions to occur in phases until the end of 2012, linked to the roll-out of Nokia’s planned product and services portfolio. During this period, Nokia intends to ramp up its capacity for the development of Nokia smartphones based on the Windows Phone platform, the company’s broad range of mobile phones and its services portfolio.
“œAt 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 CEO. “œHowever, 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 programs for the talented people of Nokia.”
“œWe are offering those who are losing their jobs a range of options, from individual re-employment support and re-training to making investments to promote innovation and working with a variety of partners to create new opportunities,” Elop continued.
This collaboration also includes plans for Accenture to provide mobility software, business and operational services around the Windows Phone platform to Nokia and other ecosystem participants. Under the proposed agreement, Accenture would become a preferred partner for Nokia’s smartphone development activities, as well as a preferred provider of services.
“œMobility is a key area for Accenture,” said Marty Cole, chief executive, Accenture Communications and High Tech group. “œThis collaboration with Nokia will enhance our ability to help clients across multiple industries leverage mobility to advance their business agendas. It is a real win-win for Accenture and Nokia”.
“œThis collaboration demonstrates our ongoing commitment to enhance our Symbian offering and serve our smartphone customers,” said Jo Harlow, executive vice president for Smart Devices, Nokia. “œAs we move our primary smartphone platform to Windows Phone, this transition of skilled talent to Accenture shows our commitment to provide our Symbian employees with potential new career opportunities.”
This doesn’t really translate to more jobs in Accenture Philippines from collaboration.
For those who don’t know, Accenture and Nokia have been working together since 1994. In October 2009, Accenture acquired Nokia’s professional services unit that provides engineering and support of the Symbian operating system to mobile device manufacturers and service providers, and which then served as a key building block in Accenture’s Mobility services portfolio.