Nokia continues to sink and launch negative signals. After overtaking Samsung in the sale of mobile phones, now the bad news comes directly from CEO Stephen Elop. Indeed, the Finnish mobile phone group had to revise downwards its estimates for operating margin of the mobile telephony sector which will record an even greater loss of -3% in the first quarter: the estimated margins are "similar or lower" than those of the first quarter.
The strategy to stay afloat is to try to speed up the cost containment program and closing plants in Finland, Germany and Canada. Chief Executive Officer Elop also said he could take "additional steps" if needed. Top executives such as Niklas Savander, Mary McDowell and Jerri DeVard will leave their jobs and with them about a fifth of the total employees will find themselves out of work, except for the workers for the Joint venture with Siemesn AG. In total it is about over 10 fewer people by 2013, and 40 fewer since Elop took over as CEO in 2010.
Nokia began selling smartphones that use Microsoft's Windows Phone software in the fourth quarter of 2011, to try to curb the wave of consumers who preferred iPhones or Samsungs with Google's Android operating system. Elop, in office since 2010, is trying to reorganize the group but Nokia has been making a loss for several quarters: in the first three months of 2012, sales fell by 24% and Samsung overtook Nokia as the largest mobile phone maker.
On the Helsinki Stock Exchange, the stock closed yesterday with a 1,8% loss at €2,22 in Helsinki, taking its overall loss over the past year to 49%.
