With the aim of streamlining and rescaling operations, handset major Nokia is revamping its organisational structure, say news reports.
It is believed that the handset major plans to terminate up to 10,000 jobs globally by the end of 2013 and shut down certain global facilities.
Further, the company is looking at consolidating its manufacturing operations and focusing on marketing and sales activities, including prioritisation of key markets. It will simultaneously streamline its IT, corporate and support functions.
Nokia also reportedly plans to reduce its portfolio related to non-core assets, including possible divestments. Reducing the operating expenses of its devices and services divisions to an annualised run rate of approximately 3 billion euro by the end of 2013 is also a priority.
The company is already in the process of selling off Vertu, its luxury mobile division. The handset major first announced these plans in December 2011. Nokia was negotiating with private equity group Permira in this context.
Goldman Sachs was reportedly acting as advisor for this transaction. It is believed that Permira failed to make an offer for Vertu, which is why the talks were inconclusive. Now, it is believed that the company is in the advanced stages of negotiating with private equity group EQT. The deal is reportedly valued at around 200 million euros.
Besides, the company has also announced changes in senior management, following the resignation of three officials.
Chris Weber, who was senior vice president, markets for Americas has been appointed as executive vice president (EVP) of sales and marketing.
Tuula Rytila, senior vice president of portfolio and business management has been appointed as the chief marketing officer (CMO) and Timo Toikkanen is the new executive vice president of mobile phones.
Juha Putkiranta is the new EVP of operations and Susan Sheehan has been promoted to senior vice president of communications.
The new leadership team will be in place from July 1, 2012.
