Nokia likely to sack several executives: report

FRANKFURT Sat Feb 5, 2011 8:01am EST

A man talks on his mobile phone as he walks past an advertisment for the new Nokia N8 on Oxford Street in London, September 30, 2010. REUTERS/Luke MacGregor

A man talks on his mobile phone as he walks past an advertisment for the new Nokia N8 on Oxford Street in London, September 30, 2010.

Credit: Reuters/Luke MacGregor

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FRANKFURT (Reuters) - The world's biggest cellphone maker Nokia is likely to sack several executive board members in a management shake-up, a German weekly reported.

As rival companies have been eating into Nokia's market share, Chief Executive Officer Stephen Elop, who took over last September, is due to unveil a revamp of the company's strategy, which could include organizational changes, on February 11.

Citing company sources, German weekly Wirtschaftswoche reported on Saturday that Mary T. McDowell, the executive in charge of Nokia's mobile phones unit, may have to leave the company along with Niklas Savander, the manager of the markets unit.

Chief Development Officer Kai Oistamo may have to go, too, as may Tero Ojanpera, the manager responsible for services and mobile solutions, the weekly reported.

Elop has ordered headhunters to look for top people with good software expertise, the report said.

A Nokia spokesman declined to comment.

Elop has been widely expected to make big changes to the top management team. So far, only one former leader, Anssi Vanjoki, has left the company.

Nokia has been left in the shade by high-end competitors such as Apple and Google and is now also suffering a drop in sales of its stronghold of traditional phones as Chinese manufacturers muscle in to take advantage of the growing market.

(Reporting by Arno Schuetze and Tarmo Virki; Editing by Susan Fenton)

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Comments (3)
ulludapattha wrote:
Too little, too late. These people should also have been sacked at the same time as Nokia ex-CEO Kallasvuo was ousted in September 2010. However, only Kallasvuo was made the lone scapegoat for the complacency and poor management skills of these members of his top management team.

According to some Nokia experts, the real problem at Nokia is at the mid-management level, where according to one ex- Nokia executive Nokia has 500 unnecessary managers!

Does new Nokia CEO Stephen Elop plan to sack even that army of unnecessary and non-productive mid-management?

In any case, better late than never.

Feb 05, 2011 11:04am EST  --  Report as abuse
ChristianJoe wrote:
The level of incompetency at Nokia Networks is unimaginable. Anybody and just about anything can be a manager as long as you have very little insight on developing services that appeal to Nokia’s key customers: T-Mobile and AT&T. In one meeting a manager with no shame suggested we could double bill AT&T for the same task as long as the two AT&T managers were not aware. This put us in an uncomfortable situation, and politely pointed out to him that was against good business ethics and reflects poorly on anybody involved and particularly Nokia. Guess who was on the chopping block!!!
The level of nepotism and outright disregard of integrity in your work has been the perfect recipe for Nokia’s decline.

Feb 05, 2011 1:50pm EST  --  Report as abuse
catraeus wrote:
The rise and fall of the Roman Empire comes to mind. I’ve known lots of Nokia people from the outside and it’s no worse than any other large company. Not even Apple! I’d been deep in the Telecom and Silicon Valleys for quite a long time. Even Apple will have its day after Jobs’ singularly … mmmmm … ??prolific?? leadership ends.

Feb 05, 2011 8:23pm EST  --  Report as abuse
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