Nokia announces job cuts

12 Jan 2005

Finnish handset manufacturer Nokia is axing around 250 research and development posts from its multimedia unit in Finland along with 100 more at sites around the globe, and says it plans to stop development work on some of its more esoteric products in a bid to trim R&D spending. The company is committed to reducing R&D expenditure to 9%-10% of sales by 2006, down from the 13%-14% level reached last year. The cuts will primarily affect the manufacturer’s development of mobile phone accessories, such as cameras, music players and its Nokia image-ware necklaces. The jewellery range includes necklaces with a wireless interface and a colour display to display photos. The range was launched in autumn 2004, but has failed to spark much consumer interest.