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Nokia’s next steps in Transformation – Nokia Building team for Future disruption (and ramping down MeeGo/Symbian)

| April 27, 2011 | 53 Replies

 

http://conversations.nokia.com/2011/04/27/nokia-announces-next-steps-in-transformation/

Steps in the transformation of Nokia are taking place.

1) Employee shuffle and lay-offs. 4000 employee reduction (from 65,000 world wide, not including NSN) by the end of 2012. This includes 1,400 employees in Finland.

2) Reductions to take place in phases until 2012, linked to roll out of planned products and services.

3) Reductions will have greatest impact on Symbian and MeeGo R&D

4) 3000 employees planned to transfer to Accenture to continue delivery of Symbian and Software development.

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http://mynokiablog.com/2011/04/27/3000-nokia-symbian-folk-shipped-off-to-accenture-to-continue-delivery-of-symbian-and-software-development/

5) Consolidation of R&D sites so they have a clear strategic role and mission. Consolidation will supposedly increase speed and accountability as Nokia ramps up capabilities and competence development on each site.

6) Transformation at Nokia ramping up. Increasing capacity for the development of Nokia Windows Phone smartphones and increasing development in Mobile Phones (the next billion) and building a team on future disruptions. MeeGo love volume down, something big in the future building up?

7) Finding jobs for the employees laid off quickly and responsibly. McDonalds?

http://mynokiablog.com/2011/04/27/nokia-announces-programme-to-help-laid-off-employees-find-new-jobs-counselling-and-training/

 

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Category: Nokia

About the Author ()

Hey, thanks for reading my post. My name is Jay and I'm a medical student at the University of Manchester. When I can, I blog here at mynokiablog.com and tweet now and again @jaymontano. We also have a twitter and facebook accounts @mynokiablog and  Facebook.com/mynokiablog. Check out the tips, guides and rules for commenting >>click<< Contact us at tips(@)mynokiablog.com or email me directly on jay[at]mynokiablog.com
  • Pingback: 3000 Nokia Symbian folk shipped off to Accenture to continue delivery of Symbian and Software development. : My Nokia Blog()

  • http://iii nocare

    well done nokia!

    iphone live forever

    • spbond

      Iphone?
      even 1100 is better !!!

  • Jurgis

    As owner of Symbian^3 device, I am interested to see, how this will affect future of OS. Maybe it is a good thing. Anyone knows something about Accenture?

    • OpenSource

      It is a large, worldwide operating IT consulting company. They have a lot of clients (companies) in many different fields. They for example develop software solutions (e.g. online purchase and billing platform) and accompany their roll-out.

    • joe

      From hearsay, accenture operation in asia is basically a mess. They’re the sweatshop of IT workers. Projects are often delayed and overrun ..

      • Rant

        Nothing changed than for Symbian :P

    • inept

      What it means is that if you thought Symbian updates were slow to come and buggy when they got here now, just wait because you haven’t seen anything. Nokia is going to deliver PR2.0 and we’ll likely never see anything beyond that.

      The company that I work for has a great deal of experience working with (or should I say rescuing) these large consulting companies that provide large-scale software solutions (IBM and Accenture being major examples) and they almost universally cannot do anything at all. They spend 2 years on a project and have absolutely zero to show for it but a giant tangle of throw-away code.

      • Mark

        This, however, is different since they’re absorbing the workforce rather than trying to learn new skills.

        It makes a lot of sense.

  • Joshua

    Slowly Elop is stripping nokia bare. Crippling it from from inside then it would be snapped by some company and then it would be no more, the thing is that like it happened with macromedia right under Elop when adobe bought, the bad stigma is still with flash, what nokia needs to do is setup a new mobile division give it a new name get a new wow product an disassociate themselve from the word nokia and then penetrate the American market then they wld have their mojo back

    • Rant

      Nokia got fat because of their lazyness. It’s time to cut away excesses to be lean and mean again.

      But I’d better say that FLOP is gutting Nokia so it can be gobbled up by M$, €lop is the trojan!!

      • Jay Montano

        fo sho dawg. Ballmer is also the cause of the PSN blunder.

        • deep space bar

          jay i actually predicted this.elop is only there to run symbian down and meego since meego is really powerful and same with Qt and the fact that meego is free microsoft doesn’t like that since it was getting more attention then windows.elop is a trojan and doesn’t wanna see meego,symbian and Qt to succeed since how much more powerful it is then windows and xna and silverlight

          • gordonH

            I sincerely hope some of the Nokia directors read your comment.
            Nokia making too many blunders … maybe it’s because of STUPIDITY.

            • deep space bar

              thank you so much i really want this guy the fess up and stop this shit cause what he’s doing is forcing this company into an american company…..i’ll post this on youtube and on engadget as well and see what they say

              • gordonH

                I still haven’t figured out why Meamo was killed. Meamo was ready 2 years ago and it’s still better then any other OS.. it’s stable, easy to code, shiny and fast.
                Hate Nokia for killing two great European OS(symbian & Meamo) with one stone(WP7).

                • deep space bar

                  M$ is scared of the booming of open source platforms and is doing all in their power to get rid of it

                  Qt is the biggest example since microsoft is losing massive ground in the mobile and computer industry they have to do this in order to get it back,if you noticed how big linux is getting now …..that’s apple’s and M$s worst nightmare since people don’t have install windows or use OSx anymore cause it cost ridiculous amounts of cash..since there is an alternative and it’s cost free and more efficient….but what is happening to Nokia is all from M$ to slow down the open source OSs from surfacing……look at ChromeOS same shit

          • http://thefeuchts.com Jason

            I definately encourage developers that liked QT to move to WebOS because you can still use it with HP’s software.

            • Jay Montano

              “Some people commented to my last post and suggested that we’d take qt as a part of our tool set. I don’t see that happening. ”

              Ari Jaaksi (WebOS head dude, formerly MeeGo head)

              Would Qt still work even if WebOS doesn’t use it in their tool set?

          • Mark

            Yeah… this is they Symbian that was already being made EOL and the MeeGo which has been a delayed and unmitigated disaster, failing to produce an acceptable device in 2010?

            No. It’s not about that at all. It’s about the fact that Elop had to do something because the status quo wasn’t good enough.

    • Rant

      Macromedia wasn’t really stripped, Adobe just didn’t like competition.

  • aboodesta

    The conspiracy theorists will love this :P

    • Someone

      Exactly what I was thinking. :)

    • gordonH

      Wow… you still don’t get it do you.

  • h3csc

    What is with that Accenture? What is it?

    • blert13

      http://www.urbandictionary.com/define.php?term=accenture

      Probably the worst software company they could have handed Symbian over to, thats what it is.
      An awful whore themselves out todo anything, software development/outsourcing company

      • Rant

        Symbian is EOL, just small maintaince stuff will be done. But I would be amazed if the hailed PR3.0 even comes to life.

        • leon

          PR 2.0 will be released.. ah.. bah… wait.. look a the tremendous advantages of the windozfone plateform in term of strategy and !

          *smash*

        • Mark

          I would be surprised if it isn’t. Penalty clauses on outsource arrangements are brutal.

  • Marc Aurel

    This was completely as expected; in fact the lay-offs are less severe at least on this stage than predicted. No McDonalds for Finnish ex-employees, though, since McDonalds Finland is just borderline profitable due to strong local competition in the fast food business :-D (this is actually no joke but a fact)

  • jamesschaeffer

    The end is very near for Symbian. :(

    • Ninja

      Bullshit. You don’t just leave 200 million people, which will grow to 350 million people, hanging. And yes, that really is the number of people that use Symbian daily.

      Nokia has to desperately find some way of keeping those people sweet until a Windows Phone device appears that is better than what they have already. If Nokia put one foot wrong they lose all those potential customers for their future products.

      And as even an absolute beginner in business will tell you, it is FAR more costly and harder to acquire new customers than it is to retain existing ones, for your products.

      Therefore Symbian and it’s users are EXTREMELY important to Nokia.

      All you immature little boys can whinge and whine and complain and declare doom, all you want, but the truth of the matter is we will see PR 2.0, and 3.0, and AMAZING things for Symbian (as predicted) and Ghz processors and all the rest. Nokia have no choice really…

      This is basic, basic, basic, business reality, irrespective of Symbian, WinPho, Microsoft etc. If you’re going to abandon 350 million existing customers (by far the largest smartphone installed base in the world, a number which is a far off future dream for Apple and Google) then you are basically putting a bullet in the head of the company. Nokia are not going to do that.

      Anyone that disagrees with this hasn’t got any clue what they are talking about.

      • S.A

        Move on.

        • Ninja

          What’s that got to do with anything? You think the 300+ million owners of Symbian devices who rely on them daily have the spare cash to simply downgrade to a WinPho device when it comes out? Don’t be insane.

          Moving on is about the most irrelevant and pointless thing you could have said, and shows you have zero understanding of this subject.

          • Rant

            One thing I keep seeing with you is that number of 200 (or 300 or 350) million.
            You say it’s installed base. Yet al reports I come across also call that number cumulative sales.

            Most reports are from 2007 onwards. Since then I’ve owned 3 Symbian devices and 1 Samsung thingy.
            The Samsung is already dead, the first Symbian was destroyed by the second owner and the second Symbian device I had has been sold on and also perished short after.

            So now I’m on my 3rd device which I still use. You’re still following me?

            If I used say 4 devices over the past 4 years of which 3 have been destroyed. That would mean 75% less installed base, right?

            If that were to happen to 100 million of the 200 million it would mean there is only 125 million installed base instead of 200 million. A lot less all of a sudden.

            If you pull that line through to the coming years, the installed base could drop to as little as 60 million or so in 2-3 years.

            To back some things up: http://www.geekwithlaptop.com/only-0-3-of-worlds-population-has-a-tablet

            Only 394 million people in the world own smartphones. Symbian would account for 250 million of that (equals 62.5%??) or 200 million (equals 50%)
            That doesn’t correlate with Symbian marketshare now does it?

            I’m not saying my numbers are correct. But I am implying you should downgrade those numbers by a far bit because they don’t hold water in the real world or when compared to several statistics.

            • Tiv

              “You say it’s installed base. Yet al reports I come across also call that number cumulative sales.”

              Since January 1 2009 Nokia has sold around 190 million Symbian devices.
              So i doubt that 200million is the cumulative sales since 2007.

              If you want a link quoting the 200million number here you go.
              http://www.forum.nokia.com/Distribute/Ovi_Store_statistics.xhtml

            • Tiv

              oh and you know that marketshare is mostly based on quarterly numbers. Annual marketshare numbers(smartphone) for 2010 put Symbian on 37.6% and 46.9% for 2009

              http://www.engadget.com/2011/02/10/gartner-and-idc-dispute-androids-dominance-over-symbian-in-q4-2/&category=classic&postPage=1

            • Just Visiting

              Hang in there Rant! I admire that you are not daunted by the naysayers and I love reading your posts – they are level-headed and logical.

            • Mark

              Rant, your numbers aren’t correct. Installed base isn’t the same as market share – the former is total active units – not cumulatively sold units, the latter is usually an expression of units sold in a quarter.

              That said, Ninja is also wrong. Symbian does have an installed base of 200 million but the 150 million sales will contain a substantial number or replacement units, not new customers. Symbian may top out at 250 million (which is still very good).

              • Rant

                Did a little further searching in the numbers. (a lot of wrong info out there)

                200/190mil is the installed base. But adding 150mil to it is wrong and that’s where my disagreement lies.

                Installed base is based on cumulative units sold minus phones older than 2/2,5 years.

                Cumulative units sold was at 280mil Q4 2010 couple that with 150mil projected and we get 430mil right?

                Let’s say that number will be reached Q4 2012(20 million units a quarter). So installed base would then be all units sold in the period Q2/Q4 2010 to Q4 2012. Q4 2010 was about 210mil units sold. So everything in between the 210mil and 430 mil is installed base = 220mil.

                That’s a substantial lower number than the projected 350mil I read from the pro-Symbian (if it needs a name) side. It’s even 28% less installed base. And that’s when they even get to 150 million extra units sold.

                In the end it’s all numbers that don’t really mean anything. We can calculate all we want but Nokia has chosen it’s path and going on it in the coming years. Nothing we can do will change that.

          • Hypnopottamus

            Even if you are correct that there are 300+ million owners of Symbian devices, the vast majority of these are legacy symbian devices (S40, S60v3, S60v5). The people that use these devices simply cannot afford modern high end smartphones (like Symbian^3).

            Whether you like it or not, Symbian is going to become at best a midrange OS catered to these markets. Sure, development will be ongoing, but not at a level that will keep Symbian competitive @ the high-end smartphone market! Unfortunately, Meego gets the same treatment simply because progress has been too SLOW!

            Bottom line: Symbian from here on out will never be considered a high end device. Development will not be on par with other high end smartphone OS’s to even compete with them. I’m sorry, but that is the simple truth (as much as I, too, dislike it).

      • Rant

        What will be seen for Symbian solely depends on how fast WP materializes. As soon as WP is out with say 4 to 5 devices from Nokia, Symbian will be dead.

        Support will consist of the same type like S60v5 is getting now.

        What could happen however is a push downwards for S3 to former 5800 territory and such. WP can’t be pushed into that price range due to chassis requirements.
        So I doubt we will ever see a 1Ghz processor in a Symbian device.

        That PR2.0 will hit the daylight I believe. PR3.0 on the other hand I’m not sure about. Depends solely on how far into development that is. If it’s 60% done it could still come to be. If it’s only 20% it most likely be killed.

        Regarding abandonment of 350 million customers. Probably half of them never even heard of updating their phone. I had 5 to 10 people with Nokia’s around me. E71/E72/N96/N95/X6 etc. none of them knew they could enhance their phone by updating.
        And of those 350 million there are a lot that wouldn’t buy Nokia again purely because they had such a bad deal with the one they had.
        It is based on my perception but I’ve heard it so much that it most likely is more widespread as well.

        I even thought about jumping ship to a SGS or something. But the N8’s camera was the USP that brought me back.

        • Ninja

          Rant you’re a man with the urge to say much but the knowledge to say very little.

          Symbian will only be dead when the userbase falls to relatively insignificant levels. This is proven by say the 5800 which sold in huge numbers and thus continued to get even major firmware updates up to late 2010 and may still get more. The SOLE reason for this was userbase. Therefore as usual you are wrong, and easily proven so. Symbian will get lots of support for a long time to come.

          > So I doubt we will ever see a 1Ghz processor in a Symbian device.

          And Nokia has said multiple times including recently, that we will. So do I believe a minor commenter on an unimportant blog, who is usually proven wrong, or do I believe the multi billion dollar company who makes these things? Hmmm, I wonder…

          > WP can’t be pushed into that price range due to chassis requirements.
          Again not true. Nokia and others have said and forecasted this is exactly what they’re doing with WP.

          > PR3.0 on the other hand I’m not sure about.
          You’re not sure, but then you never have a clue about Symbian, Nokia or WinPho. You’re less well informed than Eldar for goodness sake! It may not be called PR3.0 but the improvements therein will indeed happen, again as has been stated multiple times including by Nokia.

          > Regarding abandonment of 350 million customers. Probably half of them never even heard of updating their phone.

          You’re completely missing the point. Again. I’m not talking about updating. I’m talking about the fact they are well aware that they own a Nokia device, and Nokia needs to keep them sweet so they UPGRADE (i.e. buy another handset) that comes from Nokia, rather than a competitor.

          > And of those 350 million there are a lot that wouldn’t buy Nokia again purely because they had such a bad deal with the one they had.

          What utter rubbish. There is a world outside your perception you know. Do you know how popular Nokia is outside the US and UK? It is EXTREMELY popular and much loved. I am not saying there are people that won’t switch, of course there are, but it’s a well known fact that Nokia is much loved and very popular most places in the world. People WANT to buy their handsets. So, suprise suprise, again you are wrong.

          Right, please now reply with more total nonsense so I can easily prove you wrong again. Honestly, it’s like shooting fish in a barrel.

          • Rant

            TL;DR

            • http://ideasproject.com/ideas/3668 MJT

              Stop it you two…

      • http://thefeuchts.com Jason

        That would make sense if it was purely Nokia’s best interest in mind. If it was only Nokia’s best interest in mind though elop would of adopted an OS that was on the same level functionality wise as Symbian rather than a glorified feature phone.

        The writing is on the wall that Nokia’s adopting MS is mostly for the benefit of MS.

        Will Nokia eventually use most of the highend symbian users? YES. Elop is an American and so has a point of view of “if you dont have the US you have nothing.” Which is obviously not true.

        That said, Nokia WP7 and S60 will do very well in emerging markets, will continue to not do well in the US, but probably will eventually become the phone of choice in India.

  • jonnyjl

    Lol, yeah Nokia’s going to keep their promises on updates for S^3.

    Nokia must be smoking some great pot if they think anyone is going to believe they can turn it around with WP.

    What happens when a butterfly flutters in front of the board, are they going to drop WP and go Bada?

    • gordonH

      Watch the stock tumble again… Symbian,Qt and Meamo(not talking meego) does’nt seem to have any real support from Nokia.

    • Mark

      Err… you do know that Accenture will have a contractual agreement to deliver on the commitments Nokia have made for Symbian, right?

      The level of ignorance in this topic is staggering.

  • Rudeboi

    Maemo and MeeGo as well as Symbian will be fine and far as the higher processor and more ram Symbian devices are coming. This has been known and will happen. Believe me when I say, that Nokia knows what it’s doing with testing windows and the market is fine for them to push this device. Future disruption remember?! So if windows don’t do well and MeeGo is doing fine as well as Symbian then I’m sure they will wavier which option is best to stick with. I see it as a flawless plan. More of a win, win situation. I actually love the Anna on Symbian and on the C7 screen it’s so beautiful.

  • cgf

    nokia recent news are intresting
    their ceo is so brave
    so i hope to hear another big strange news that

    NOKIA TO DROP WINDOWS IN 2012! and GO FOR MEEGO

  • shymon

    few more steps in transformation needed..

    step 1. get a lock with key

    step 2. bring the shutter down…

    transformation completed successfully ..!

  • http://shmerl.blogspot.com Shmerl

    We knew that. Nokia sold its soul to the dark empire. Meego will strike back though, and Nokia will regret ;)

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