The market value of Nokia's biggest layoff in China has shrunk by 93%

Recently, Nokia, suffering from poor performance, began to lay off again, hoping that it could help itself through throttling while expanding the Territory in Windows Phone (WP. It is reported that, according to CEO Stephen Elop, a new round of layoffs will be launched, and 2013 people will be laid off by 10 thousand. It was reported that the layoff even involved Nokia's top executives, and three executives will leave. The message caused Nokia's share price to drop by about 10%. According to Reporters, this layoff will also involve Nokia China. It coincides with the launch of Nokia's new flagship model Lumia 900 in China. The success or failure of this model will be a battle against China and even the world.

 

　　The new layoff plan involves tens of thousands of people

 

ELOP announced that it would cut 2013 employees to save 3 billion euros by the end of 10 thousand. Nokia has already laid off 4000 people. It is reported that the downsizing mainly involves R & D teams. Nokia started to work with the Qt R & D team when there were few developers at Symbian's headquarters in Finland. Previously, in Nokia's transformation to the mobile Internet, the Qt development platform was once held high by Nokia due to its advancement and openness. Nokia also publicly stated that the vast majority of application development will be based on the Qt platform.

However, with the close cooperation between Nokia and Microsoft's WP, the Qt platform, like the UIQ platform in Sony Ericsson's hands in the past, began to keep up with the pace of the trend, and layoffs became reasonable. It is understood that most of the previous work on the Qt platform is to support the Meego system, and Nokia has determined that it will not launch the system products after the license.

In addition to layoffs, Nokia's high-end luxury mobile phone brand Vertu has also been easy to master. Nokia said it had reached an agreement with European private equity fund EQTVI to sell the Vertu luxury mobile phone brand, with a bid of about 0.2 billion euros. The entire transaction is expected to be completed in the second half of this year.

It is worth noting that many of Nokia's downsizing actions have not involved China or have little impact on the Chinese team. On the contrary, Nokia has consciously migrated some R & D components to lower-cost China, and even recruited more R & D personnel. However, the reporter learned from reliable channels that this 5-digit layoff will also affect China, at least some R & D personnel in China will leave the company due to the re-adjustment of the system R & D end.

 

　　In five years, the market value has shrunk by more than 90%

 

Interestingly, according to local media reports from the Nokia headquarters in Helsinki, Finland, two security guards escorted Elop back home on the same day after the announcement of layoffs. The reports are more vividly matched with pictures to express potential "Dangers ".

However, the real danger lies in the response of investors, said elopai, a professional manager who rescued Nokia from the fire. Last Thursday, Nokia issued a warning that the decline in its mobile phone business far exceeded the expected level two months ago. As a result, Nokia's shares listed in the US fell by 16% to $2.35 per share that day, creating a new low since 1996. Subsequently, Nokia's share price rebounded to $2.48 per share on Friday, boosted by the overall rise in the market.

However, the share price drop has led Nokia's market value to shrink to $9.3 billion. Compared with Apple's first-generation iPhone, Nokia's market value evaporated by more than 2007 compared to the company's 90% release of the iPhone in apple.

At the same time, Moody's, a rating agency, lowered Nokia's credit rating to "junk" because it was "not optimistic about Nokia's cash holdings and sales of new Windows phones ". The other two ratings, Standard & Poor's and reputation, gave similar ratings to Nokia's shares as early as April this year.