Nokia To Slash 10K Jobs Worldwide

Nokia is cutting another 10,000 jobs globally and has warned that second-quarter losses from its mobile phone business will be larger than expected.

The cuts bring total planned job cuts at the Finnish group since Stephen Elop took over as chief executive in September 2010 to more than 40,000. Nokia will also book additional restructuring charges of about 1bn euros (£811m; $1.3bn). Nokia shares closed down 18% and have slumped about 70% since February 2011.

Last year, Nokia announced it would phase out its own Symbian smartphone operating software and, for its smartphones, focus on Microsoft’s Windows Phone operating system. Nokia will close its last remaining plant in Finland, at Salo, although it will continue to do research there. Research and development sites at Ulm in Germany and Burnaby in Canada will also close. The company hopes to complete the closures and redundancies by the end of 2013.

It expects the process to cost 650m euros ($817m) this year and 600m euros ($754m) next year. The overall aim is to reduce core operating costs to 3bn euros ($3.8bn) a year. Slashing costs should moderate Nokia’s operating losses, but Lee Simpson, an equities strategist at Jefferies, said: “It probably isn’t enough.”

Nokia did not give guidance on its forecasts for revenue on Thursday, but according to research by the consultancy Gartner, it has lost market share to both Apple and Samsung to become the world’s third biggest seller of smartphones.

Do you think Nokia will be able to rise against the tide it is facing? Share your opinions with us in the comment box below!

Source: Digg

Image: Reuters

Investors File Lawsuit Against Facebook Over IPO

At least three lawsuits have been filed over Facebook’s initial public offering, including one in the Southern District of New York on behalf of three purchasers of Facebook common stock. The suit alleges that Facebook’s SEC filings prior to going public included “untrue statements of material fact,” chiefly regarding the company’s admission that its ability to monetize mobile users remains a challenge.

The defendants named in the suit include Facebook executives Mark Zuckerberg, CFO David Ebersman and Chief Accounting Officer David Spillane; board members Marc Andreessen, Erskine Bowles, Jim Breyer, Donald Graham, Reed Hastings and Peter Thiel; and underwriters Morgan Stanley, JPMorgan Chase, Goldman Sachs, Merrill Lynch and Barclays Capital.

The suit relies on reporting from Reuters, which discovered that underwriters including Morgan Stanley lowered their estimates on the social network’s revenue growth during the roadshow. Morgan Stanley has said that it followed its standard operating procedure for IPOs with Facebook.

Shares of Facebook managed a slim gain from the IPO price of $38 when they debuted Friday, but then spent the next two sessions in free-fall. The stock finally righted itself Wednesday, climbing 4.5% to $32.40.

A separate lawsuit brought against Nasdaq OMX Group, alleges negligence on the part of the stock exchange operator, which delayed the initial trading in Facebook on Friday due to technical issues and then struggled to send execution confirmations notifying customers of completed trades for several hours.

Do you think Facebook stock can recover after this lawsuit? Share your thoughts with us!

Source: Forbes

Image: NY Daily News