I want to start this blog with my personal view on Nokia’s recent announcement, in which Nokia plans to reduce its personnel by 10 000 people. [1]
Let’s try to understand the amount of people there. If everyone had their own cubicle of 2 by 2 meters (really small space, try it yourself), accompanied by aisle of 1m on one side, those people would need open office space 300 meters long and 200 meters wide – roughly the size of Beijing national stadium (known as Bird’s Nest). And that’s just office space. Next we should add stairs, coffee rooms, cafeteria, meeting rooms… Somewhere will be lots of office space free soon.

My heart is with the ones getting unemployed. My support goes to those who continue to pull Nokia forward. However, I don’t see any better way to handle the situation. Nokia’s quarterly reports are a horror story to read. [2] The cash flow is negative and there is no company on this planet that can afford to do 1.34 billion euros of negative result per quarter. (Or 260 million for non-IFRS). Nokia needed to cut the costs. Period. It’s not easy. It’s never easy to downsize or to be downsized. Still, talented people will re-employ or re-educate themselves. Untalented people should have been kicked out long time ago.

I only hope Nokia will return to path of positive quarterly results because of this. There really is nothing else to cut off, everything left are profit-making units. And one last time my best to the downsized. I’ve been there. Keep in your mind that you ARE professionals. Don’t let anyone say you WERE. Now is time to show the best of you and find new challenges. This time credit belongs to Tomi Ahonen for providing guide for that. [3]

[1] Nokia’s official announcement.
[2] Nokia’s profit warning announcement.
[3] Advice about new career by Tomi Ahonen.