Global News

February 13, 2003
Nokia Networks streamlines R&D sites

FINLAND -- Nokia Networks, the infrastructure arm of Nokia, is seeking to improve its efficiency by reducing the number of R&D sites and centralizing work into larger entities within the organisation. The aim is to increase efficiency and operational synergies as well as to reduce costs.

The planned actions mean reductions in the number of employees by approximately 550 positions in the US, the UK, Sweden and Finland. Nokia Networks is starting the necessary consultation and negotiation processes in the respective countries. A number of the employees are expected to be able to relocate within Nokia.

Nokia Networks will centralize its broadband access activities by transferring work from its site in Santa Rosa, California, to its broadband site in Espoo, Finland. The consolidation will result in the eventual closing of the Santa Rosa facility. At the same time, it will increase the broadband access headcount in Finland, transfer some positions to its Mountain View site, and continue to increase partnering in broadband R&D and testing.

Nokia Networks plans to close its small base station R&D site in Kista, Sweden, and reduce the number of employees in its UK R&D site due to reduced need for hardware R&D work. A small material purchasing and planning unit in the UK will also be under review, as its work is planned to be transferred to larger sites. At the same time, it discontinues some programs to balance R&D efforts with the current business situation and needs.

Through these changes, Nokia Networks will ensure a strong R&D focus on its core technologies, and improve its overall competitiveness.

Contact:
Nokia Networks
Tel. + 358-7180-38198
Web: www.nokia.com