Laying people off is a thing you’re supposed to do when you’re not making a ton of money, right? I didn’t study economics in school, so maybe I have the whole thing backwards. Nokia is a giant, multi-national corporation–surely it knows more about this whole thing than I do. Heck, I couldn’t really tell you the difference between micro- and macroeconomics, if put on the spot.
Here’s the thing: the Finnish phone giant had a net profit of €529 million ($741 million) in the past quarter. That’s up from a net loss of €559 million ($783 million), in that same timeframe the year before. The company moved 110.4 million devices in that period.
Still, even with such great numbers, the company is slicing 1,800 jobs. Why? Well, for starters, the company expects its sales numbers to drop for the full year–given the ever-increasing competition from companies like Apple, Google, RIM, and Microsoft.
The job loss is part of a massive restructuring for the company, including a new product development team. “Some of our most recent product launches illustrate that we have the talent, the capacity to innovate and the resources necessary to lead through this period of disruption,” the company’s chief exec said in a recent statement. “We will make both the strategic and operational improvements necessary to ensure that we continue to delight our customers and deliver superior financial results to our shareholders.”
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