Beleaguered Nokia to shutter two sales offices in China

Nokia has experienced a lot of negative news over the past few months. The stock has been in a free-fall, showing no sign of leveling off, and they announced plans to cut 10,000 jobs world-wide. Combine that with the neutering of the highly regarded Lumia 900 and you have a company that can’t seem to buy a break.

Unfortunately, according to NASDAQ.com, there’s more bad news on the horizon: Nokia plans on shutting down two regional sales offices in China, the largest smartphone market in the world. The silver lining is that not everyone will be sent packing when the offices close. Some of the positions will be merged into the two remaining offices in China, one in Beijing and the other in Guangzhou; there is no word on how many people will be laid off as a result of this operation.

Sales of Nokia smartphones have been plummeting in China over the past year. In the second quarter of 2011, nearly one-third of phones had the Nokia logo on them. Now, less than a year later, that number is down to a meager 11% while competitor ZTE Corp’s market share increased from 3.6% up to 10.6%.

Nokia needs to find a way to remain competitive in order to right the ship before it sinks. It appears that they’re placing most of their eggs in the Windows Phone 8 basket; time will tell if this is the right approach.

Source: NASDAQ

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9 Comments

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Thats not good. If WinPho on NOKIA was doing well they would not be closing any offices. Come to think of it I just saw some WinPho sales numbers and they were not good and in decline.

Albert said,
maybe they should merge with rim. "rimming nokia" sounds like a very good corporate name.

I laughed hard on this one. Thanks

Nashy said,
Is "Shutter" Neowin's word of the month or something?

lol - I was thinking the same thing - maybe Neowin is going to sue Apple if they use this "made up" word in the future

good of them to keep cutting costs.. They need to be lean and mean if they ever have a chance of surviving. Im sorry but 122,148 employees is way to many compared to 60,400 of apple.. especially since their market cap is nearing only 1% of apples market cap..

Lachlan said,
Im sorry but 122,148 employees is way to many compared to 60,400 of apple.. especially since their market cap is nearing only 1% of apples market cap..

WTF does Apple or their market cap have to do with this at all?

ahhell said,

WTF does Apple or their market cap have to do with this at all?

It has everything to do with it. Nokia have far more staff than a company that dominates them in market share.

That's an issue. It means Nokia has too much dead wood in their offices.