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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Zak Islam is a freelance writer focusing on security, networking, and general computing. His work also appears at Digital Trends and Tom's Guide.
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soo-nah-mee 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.Reply -
vkg1 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.Reply -
svdb 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?Reply -
zzz_b It must be really bad if they sell the head officequaters.Reply
Too bad, because they make high quality and durable phones. Also, best cameras on the phones! -
A Bad Day 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!Reply
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. -
azraa About the recession, and the bigger picture of it all:Reply
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. -
blurr91 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 badReply
Then don't work for them. Find an employer in your region who would pay higher for your labor. Such is free market. -
darkavenger123 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.Reply