Nokia’s Human Cost for its Microsoft Windows Phone Strategy

I am among the group that applauded when Nokia announced it would abandon Symbian as its primary smartphone platform in favor of Microsoft’s Windows Phone. I continue to believe it is a good strategic move and am anxiously waiting for the first Nokia Windows Phone device to emerge.

Unfortunately, there is always a human cost when two businesses consolidate. Although Microsoft and Nokia are not merging, Nokia is essentially virtually merged with Microsoft’s Windows Phone group in terms of research, development, and implementation. Bloomberg reports that as many as 6,000 Nokia jobs may be eliminated (38% of Nokia’s R&D staff).

Nokia Faces Steepest Job Cuts in 20 Years on Microsoft Deal

There’s also the more difficult to identify reduction in productivity that occurs when a company is in a state of flux. Nokia employees won’t see the full extent of these changes until, perhaps, 2012. This will be, ironically, about the same time that the first Windows Phone based Nokia smartphone should start rolling out of their factories.

Publish date: April 13, 2011 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT