Nokia R&D Workforce Faces Deep Cuts Ahead of Microsoft Integration (NOK, MSFT)

Workers employed by Nokia NOK are preparing for difficult job cuts in coming months, as research and development is scaled back and the Microsoft MSFT partnership remains on track. According to Antti Rinne of Pro, Finland's biggest private-sector office-worker union, as many as 6,000 jobs are at risk at the end of the month. This is equivalent to nearly 40% of the company's global R&D payroll. Nokia Corporation is engaged in the manufacturing of mobile devices and in converging Internet and communications industries. It has three segments: Devices & Services, NAVTEQ, and Nokia Siemens Networks. Nokia CEO Stephen Elop said in February that the company will partner with Microsoft's Windows Phone 7 as its main smartphone operating system over the next two years, a move triggering “substantial reductions in employment.” As Nokia begins to phase out its Symbian OS, fewer employees will be necessary. A Bloomberg report notes that "Nokia has about 21,000 workers in Finland, or 16 percent of its global headcount including the networks venture with Siemens AG (SIE), according to filings. The figure also includes a smartphone factory in Salo with about 2,000 employees." Shares of Nokia gained $0.01 Tuesday, to close at $9.03. Microsoft Corporation stock lost $0.09, to finish at $25.98.