Nokia to Sell Finnish Headquarters to Reduce Costs

Financially struggling Nokia has said it's selling the firm's head office in Espoo, Finland to software consultancy firm Exilion for $222 million.

The struggling smartphone developer said in a statement that it'll lease back the head office at a lower price; however, additional figures were not divulged.

Nokia's chief financial officer, Timo Ihamuotila, stressed the deal is in line with the firm's aims to reduce spending costs and to cut back on non-core activities. That said, it noted that it'll remain in the Finnish city of Espoo "on a long-term basis".

"Owning real estate is not part of Nokia's core business and when good opportunities arise we are willing to exit these types of non-core assets," Ihamuotila said. It expects to complete the sale by the end of 2012, which is less than four weeks away.

Nokia has announced 10,000 job cuts for 2012 alone in a bid to save 1.6 billion euros by the end of 2013. Its third-quarter results posted a loss of 576 million euros and a decline in net sales of 19 percent year over year.

AMD made a similar move last month.

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18 comments
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  • I hope the rumors of Nokia working on an Android device are correct, because no matter how good W8 phones are, I don't think they can keep these guys afloat.
    13
  • It must be really bad if they sell the head officequaters.

    Too bad, because they make high quality and durable phones. Also, best cameras on the phones!
    11
  • Other Comments
  • I hope the rumors of Nokia working on an Android device are correct, because no matter how good W8 phones are, I don't think they can keep these guys afloat.
    13
  • Haha... Screw Nokia... They're so stupid that they can't even see that if you don't do droid then you are just another mentally challenged sheep.
    -14
  • Conveniently relocate your headquarters to a fiscal paradise to avoid paying taxes in your own country... so, where will Nokia relocate to? the Cayman Islands? Luxembourg?
    -1