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Nokia in hot water with miffed shareholders

by Sarah Griffiths on 15 February 2011, 17:16

Tags: Nokia (NYSE:NOK)

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Mob-tastic?!

Nokia is under pressure on 2 fronts from shareholders and its own employees after the unpopular announcement that it will ditch Symbian in favour of Microsoft's Windows Phone 7.

While a union for some of Nokia's employees is demanding a payout for every worker laid off in Finland, another group supposedly made up of small shareholders is calling for CEO Stephen Elop's head on a platter and a reversal of Nokia's plans, The WSJ reported.

It seemed like only a matter of time until the revolt began, given the Nokia's shares took a battering upon the Microsoft news and Elop, who hailed from Microsoft has been portrayed as a wolf in sheep's clothing.

A group of 9 anonymous shareholders who claim to have worked at Nokia in the past, have now reportedly published a manifesto called Nokia Plan B to present at Nokia's annual GM on 3 May, intent on dissolving the Microsoft partnership and reverting back to the Symbian and MeeGo model.

As well as calling for the immediate resignation of Elop, the group has apparently made it clear it wants MeeGo as the firm's main smartphone platform and to eke out Symbian's existence for at least 5 years, as well as a restructuring of the Microsoft deal for North America.

Nokia spokeswoman Mona Kopponen told The WSJ: "Nokia's new strategy has full approval from the board of directors and the Nokia leadership team, and our focus now is on the execution of this new strategy."

However as well as worrying about disgruntled shareholders, Nokia has a new battle on its hands as the Finnish Trade union Pro, which represents around a quarter of the firm's workers, is irked that Nokia's move to Microsoft's platform will mean it will slash research and development costs in its Symbian platform and likely cut jobs too.

The union is reportedly demanding that Nokia forks out a whopping €100,000 to each employee who loses their job because of the change in strategy.

Antti Rinne, chairman of trade union Pro, reportedly said: "It would be reasonable that those who lose their jobs would receive a lump sum of €100,000 in addition to their severance payment to help finance their reeducation."

While Nokia has neither agreed nor disagreed with Pro's terms, its spokeswoman said it takes its reponsibility as an employer ‘seriously'.

She apparently added: "When the planning proceeds and we get more visibility to the personnel related impact of our strategy, we will invest time and resources in supporting our employees who are impacted by the changes."

Pro reckons Nokia could slash as many as 5,000 jobs in Finland- around a quarter of its workforce in the country. However, there is no news on how many jobs might be at risk from Nokia yet.



HEXUS Forums :: 6 Comments

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The fools should have gone with Android.
bwhahahahaha
Antti Rinne, chairman of trade union Pro, reportedly said: "It would be reasonable that those who lose their jobs would receive a lump sum of €100,000 in addition to their severance payment to help finance their reeducation
I've heard of highballing in offers, but 100k… hahahahahahahahahahahahha *breaths* hahahahahahhahahaha.

In all honesty if Nokia had actually spent money on the education of the people who designed Symbian, it might not have been such a pile of poo to code for.

Tbh I think nokia could do with loosing a quater of their workforce, so the union might well just be playing into their hands, go on strike brothers.

100k… Its still cracking me up now.
This was always going to a tough decision for Nokia, but the Mee-Go platform isn't ready yet and Symbian 3 hasn't taken off as a format within the Smartphone sector. This has left Nokia loosing market share and no doubt they could soldiered on, but there is definitely a distinct gap and it would be better to be earning some revenues rather than none. This isn't that drastic a change if you look at the company's history, the shift from paper to phones.

Common Sense would problem suggest that to a certain extent both Microsoft and Nokia need each other at the moment, no doubt they will probably look to design each other out at some point in the future.

The other option to save jobs might to reduce the hours everyone works and keep an off-season team, until everything begins to pick up again depends on how happy everyone would be to job share in the meantime.

Would android have forced everyone into direct competition on costs?
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In all honesty if Nokia had actually spent money on the education of the people who designed Symbian, it might not have been such a pile of poo to code for.
I really hate this attitude. There's nothing wrong with the underlying OS, it's the UI that's the biggest problem.
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I really hate this attitude. There's nothing wrong with the underlying OS, it's the UI that's the biggest problem.

To the end user that IS the OS..