Mike Dano
Nokia Corp. said it will cut jobs in its Multimedia Business Group, a move aimed at streamlining its global research and development activities. Nokia said it plans to reduce R&D spending to around 10 percent of 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 of Nokia’s multimedia division. “Our multimedia strategy remains unchanged. We see very strong momentum in our smart imaging business and while games, music and media are still in a more early development phase, we continue to see great potential also in these areas.”
Nokia said it has not yet determined the exact number of job cuts, although the company said it would be staff mainly in Germany and Finland. The news comes as Nokia plans to increase its workforce in India to meet growing demand for mobile phones.
