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Nokia to Sell Finnish Headquarters to Reduce Costs

By - Source: Nokia | B 18 comments

Software consultancy firm Exilion purchases Finnish handset manufacturer's central office for $222 million.

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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Top Comments
  • 13 Hide
    soo-nah-mee , December 4, 2012 7:13 PM
    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.
  • 11 Hide
    zzz_b , December 4, 2012 7:49 PM
    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!
Other Comments
  • 13 Hide
    soo-nah-mee , December 4, 2012 7:13 PM
    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.
  • -1 Hide
    svdb , December 4, 2012 7:35 PM
    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?
  • 11 Hide
    zzz_b , December 4, 2012 7:49 PM
    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!
  • 3 Hide
    A Bad Day , December 4, 2012 8:26 PM
    zzz_bIt 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!


    I still have a 11 year old Nokia phone that is about to be 12 years old.

    Battery: Only changed once, or never.

    Damage after years of abuse: Slightly warped plastic covering on one side, glue would prevent it from sticking out though.
  • 1 Hide
    randomizer , December 4, 2012 9:52 PM
    Nokia should go back to manufacturing the 3310.
  • -3 Hide
    azraa , December 4, 2012 10:25 PM
    About the recession, and the bigger picture of it all:
    I personally think that AMD and Nokia are in the wrong here. Pretty much anyone these days is making 'budget cuts' and 'reducing costs' but what they get is to devalue their market price by lowering trust from investors. Taking back your money from the game to save it leads to everyone doing the same, its a circle.

    Have you ever heard of the New Deal, way back in time from the Great Depression?
    Investment and daring is what the market needs right now, and the IT sector should be the leading front on that matter: creating constant change, bringing back jobs with your devices/software, and making the capital flow again, even if you have to acquire debt on the initial step.
  • -3 Hide
    blurr91 , December 4, 2012 11:05 PM
    hydac7I never really liked Nokia , they had a production plant in my region Eastern Europe and they overworked people and paid $hit wages , they paid equivalent of 200 euros (aprox. 260 $ ) salary per month to line workers , while Western Europe workers got paid above 1000 Euros ( aprox 1350 $ ) per month ... so yeah i m hating Nokia really bad


    Then don't work for them. Find an employer in your region who would pay higher for your labor. Such is free market.
  • 1 Hide
    darkavenger123 , December 4, 2012 11:10 PM
    The Finnish is Finished.(tm)
  • 0 Hide
    darkavenger123 , December 4, 2012 11:12 PM
    The Finnish economy is largely dependant on Nokia...maybe > 50%. If they still keep their arrogance and refuse to make Android phones....then the whole country could collapse. No joke. I am sure the President/Prime Minister of Finnish will have something to say before Nokia is really Finished.
  • 1 Hide
    blurr91 , December 4, 2012 11:15 PM
    azraaAbout the recession, and the bigger picture of it all:I personally think that AMD and Nokia are in the wrong here. Pretty much anyone these days is making 'budget cuts' and 'reducing costs' but what they get is to devalue their market price by lowering trust from investors. Taking back your money from the game to save it leads to everyone doing the same, its a circle.

    Have you ever heard of the New Deal, way back in time from the Great Depression?Investment and daring is what the market needs right now, and the IT sector should be the leading front on that matter: creating constant change, bringing back jobs with your devices/software, and making the capital flow again, even if you have to acquire debt on the initial step.


    What if the gamble fails? For example: AMD's Bulldozer and Piledriver? Nokia junking Symbian and taking on WP7? Microsoft Kin? Blackberry Playbook? HP's acquisition of WebOS?

    A company has to survive first before making innovations. Sometimes these gambles don't work and the company needs to cut losses. If that still doesn't work, then the company needs to go away. Free market means the freedom to succeed as well the freedom to fail. Creative destruction at its best.

    I love Nokia phones. I really hope Nokia can stay afloat until the market adopts WP8 in larger chunks. If it means the company needs to scrounge together some cash by selling its building and land, then so be it.
  • 0 Hide
    lengcaifai , December 5, 2012 1:59 AM
    this is the consequences of not properly develop symbian and meego, Nokia has no turn-back road now, either fucus on developing WP8 properly or ... done
  • 1 Hide
    Kami3k , December 5, 2012 2:59 AM
    Nokia is going to continue to be in trouble until they start making high end phones for Android.

    No matter how well WP 8 is, it's still a Windows phone, and given how Windows 8 is not doing well, that will give Windows PHONE 8 a bad image.

  • 0 Hide
    Zingam_Duo , December 5, 2012 5:21 AM
    CFO: "We have losses. No money for bonuses that year!"
    CEO: "Let's sell the Headquarters!"
    A month later:
    CFO: "We made profit!"
    CEO: "Please, calculate the bonuses immediately!"
  • -1 Hide
    threehosts , December 5, 2012 6:57 AM
    hydac7I never really liked Nokia , they had a production plant in my region Eastern Europe and they overworked people and paid $hit wages , they paid equivalent of 200 euros (aprox. 260 $ ) salary per month to line workers , while Western Europe workers got paid above 1000 Euros ( aprox 1350 $ ) per month ... so yeah i m hating Nokia really bad


    I know that a considerable amount of people are complaining about low wages but you should also keep the whole picture in mind. In countries with high salaries it is getting increasingly more difficult to get jobs, the lower salaries is what creates job opportunities. The other thing is also that you should look at your expenses. In a country with high salaries everything is also much more expensive; the rent, the food, the electricity, the gasoline, phone bills/internet etc.

    Eventually the salaries in the "low-salary" countries will get higher just as the expenses in those countries will get higher. All it takes is some time and patience to get there. In the meanwhile those people can start unions to make sure that the work place is safe and the salaries are at least reasonable given the standards in those countries.
  • 0 Hide
    FinneousPJ , December 5, 2012 8:07 AM
    Some points.

    Finland is not dependent on Nokia.

    Nokia is not moving out of Finland, or Espoo. They're selling the buildings AND LEASING THEM BACK, read the article. They simply wish to outsource the facility ownership.

    I'm sure Nokia paid adequate wages for your area, hydac7 - no less than other production facilities. Why would people work for them otherwise?
  • 0 Hide
    threehosts , December 5, 2012 8:16 AM
    hydac7You're wrong we have exactly the same prices as they have on food gas and utilities 60% of that salary goes to buying food ( no fancy stuff just basic) and the rest to living costs and you end up with nothing , It is unfair for us to have the same prices as the west but get 4 times less pay , that's why last winter people took to the streets over here , surviving here is harder and harder

    I don't know what stores you walk in but in general you're wrong. When it comes to electronics and imported stuff, the price differences are not that big but when it comes to staple foods such as meat, dietary products and fruits/vegetables the prices are much higher in "the west". So is rent unless you go for something luxurious. I'd estimate that on average, the price of gas and electricity is 25% higher in the west. I'm travelling quite a bit so I know what I'm talking about here.
  • 0 Hide
    vkg1 , December 5, 2012 10:33 AM
    Nokia made the same bone-head mistake the fruit company made -- they think they are better than eastern companies and they thought they could do something different.

    But Apple is being reeled in by the superior Samsung and everyone else who joins Samsung by not developing unique OS. If Nokia would give up the pathetic attempts at doing something different, then they could survive. However, I believe they will continue to be idiots making phones for idiots, and will continue to try to do things in a unique way, and will be destroyed by Samsung and the others who join Samsung.