Nokia Oyj (ADR) (NYSE:NOK) has announced that it plans to cut 353 jobs in its home market Finland in 2018. The company says the move is as a result of a weak global network market. This, according to the company is part of global cost-savings plan. The figure is a reduction from the initial 425 jobs which the company had intended to trim.
In the final plan, the company will cut a total of 283 of the jobs from its mainstream networks business plus 70 jobs from its Technologies unit. Some of the technological units include Nokia’s digital health business and licensing operations.
Globally, the company is planning to save around 1.2 billion euros ($1.5 billion) every year. This move comes after Nokia’s acquisition of Alcatel-Lucent in 2016. The company says it is also experiencing a weak network equipment market, which has forced it to step up measures. Currently Nokia has 6,300 employees in Finland and about 102,800 globally.
In other news, Nokia is retuning as the official sponsor of Kolkata Knight Riders (KKR), which plays in the Shahrukh Khan’s Indian Premier League (IPL). This comes after more than three years since the last sponsorship. The new deal is for two years and will start with this year’s IPL season.
HMD Global Oy, which is based in Finland and the licensee of the Nokia brand for tablets and mobile phones, intends to use KKR for its marketing programs and help build its brand in India. This comes after the company launched its Nokia brand in 2017. Ajey Mehta, the HMD Global country head for India said the company will be using its marketing assets for KKR.
However, Mehta did not disclose the financial size of the deal and if the agreement will include the use of Shahrukh Khan in its marketing plans. Nokia was the lead IPL sponsor in 2004 all the way to 2014, when Shahrukh Khan became the celebrity endorser of the Nokia brand. Gionee, a Chinese smartphone producer was the main sponsor of KKR up to the 2017 season.
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While commenting on the deal, Shahrukh Khan, co-owner of KKR said they are very happy to see the return of Nokia. He added that through the partnership, they intend to unite fans of KKR and Nokia with a common passion for cricket.