Struggling mobile handset marker Nokia has turned to increased outsourcing, transferring up to 820 employees to HCL Technologies and Tata Consultancy Services on Thursday, in a bid to cut operating costs as it looks to regain lost market share.
The company also cut 300 jobs, mainly in Finland, as part of a focussed strategy that it had laid out last year.
“As part of the planned changes, Nokia plans to transfer certain activities, and up to 820 employees to HCL Technologies and Tata Consultancy Services. These are the last anticipated reductions as part of Nokia’s global streamlining as announced on June 2012,” the company said in a statement.
“We believe these changes will create an organisation appropriate for Nokia’s current size and scope,” it added.
Meanwhile, according to a separate statement from HCL Technologies, the company has entered into a long-term IT infrastructure management outsourcing services agreement with Nokia.
“The scope of this arrangement will include network management across Nokia’s global IT infrastructure operations. We will be deploying our MyCloud solutions as part of this engagement,” HCL Technologies said.
Nokia’s job cuts are part of its overall strategy to axe 10,000 employees, including 3,700 in Finland.
“Nokia is beginning the process of engaging with employee representatives on these plans, and will offer the employees affected both financial support and a comprehensive support programme,” the company said.