When Nokia made the move to Windows Phone, it made it amply clear that they would be streamlining its operations and would be looking to save 1 billion Euros in R&D and other costs. They also made it clear although they still plan on making 150 million Symbian devices, the platform was nearing its end.
Today as the next step in that journey to turn around the ship, Nokia’s announced a collaboration with Accenture (a company of more than 215,000 employees) that involves a transfer of 3000 employees to support the continued development of Symbian that Accenture will now undertake.
Next, Nokia will layoff an additional 4000 employees out of a total of 65,000 worldwide in the latter half of 2012. Out of the 4000, the primary cuts will be in Finland totalling about 1400 jobs with the majority of the cuts being in Symbian & MeeGo R&D. In an effort to help employees affected by this transition Nokia has also launched a comprehensive social responsibility program that will help employees find jobs within and outside the company or even become entrepreneurs themselves.
What all of this means is that Nokia is effectively shutting down interval Symbian development, there will still be updates and improvements to the OS, but going forward Accenture will be responsible of all of that. Next, Accenture gains a huge pool of talent from Nokia, inducing 3000 employees isn’t easy, but considering how Accenture is involved with developing for other platforms as well, they might start tuning the former Nokia employees’ focus toward developing for the competition, specially because 2-3 years later Nokia will not be making Symbian devices.
Since Nokia’s MeeGo R&D has also been cut, you can rest assured that Nokia will not be releasing anymore MeeGo devices after the one they’ve already promised. Makes you wonder where the next big disruption will come from?
At the end of the day, Nokia have identified a clear strategy, let others handle software and get back to what they do best hardware. As Phil nicely puts it,
“There’s no faster moving industry in the world today than mobile technology. Take a sip of water and you’re behind in the pack. Blink your eye and watch the pack move in a different direction. Nokia sipped, blinked, then set on creating a new winning strategy in this redefined landscape. This was Nokia’s first step to transformation.”