HS.Fi reports that last year, Nokia’s operating expenses was around 5 Billion Euros. In order to cut some costs, including maintenance and repair of the HQ in Espoo, Nokia is supposedly considering selling AND then Renting out the property. By renting, Nokia would still use the HQ themselves (i.e. not rent to others). Not sure how much HQ’s expenses are on that regard. The article notes that several large companies have done exactly this because maintenance and ownership is not part of their business.
- forest industry companies UPM and Stora Enso did not own at the head office, but they are rented.
- lifts manufacturer Kone has sold its headquarters.
Peter wanted to clarify further
Before any post is made from this Finnish article, I’ll add some detail:
1) They are only evaluating if that would be cost-efficient for Nokia
2) Repair & Maintenance of buildings and owning property costs are high and either one of those are not part of Nokia’s core competence.
3) Nokia would continue to use the building as their HQ, only now renting them instead of owning them
4) This is a trend happening in Finland, many other big companies in recent years have done the same
There is absolutely no plans to move HQ abroad.
More belt tightening. :/ Any news on whether Nokia are gonna temporarily stop the dividends in order to weather out a few more quarters?
Cheers jiipee and Peter L for the tip.
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Sites That Link to this Post
- Mobilissimo.ro | October 3, 2012
- Press Release: Nokia to sell and lease back head office building : My Nokia Blog | December 4, 2012