Nokia, the Finland-based cell phone maker, announced on Aug. 8 that its San Diego work force would be cut in half, from 1,100 to between 500 and 550 people.
Keith Nowak, a company spokesman, said that Nokia is “changing strategy” and focusing less on its Code Division Multiple Access operations, resulting in a reduced need for manpower. The technology, also known as CDMA, is the main focus of Nokia’s San Diego operation.
“(Nokia’s) CDMA is exceedingly difficult,” said Nowak. “We’re doing our own R & D; and manufacturing , our own everything , and it was financially prohibitive.”
Nokia will begin a more outsourced approach to research and development and manufacturing related to its CDMA business, but it will continue marketing, servicing and selling CDMA products.
According to Nowak, every existing position at the Nokia facility near Poway will be eliminated during the next few months. However, many of the jobs will turn over into positions more consistent with Nokia’s current strategy.
“Everybody will know exactly when their current job is slated to end,” Nowak said.
“The new jobs for the new business model will be posted and everybody will have an opportunity to apply for the 500 to 550 jobs.”
Nokia’s new positions will focus on maintaining relationships with companies that receive outsourced CDMA work, as well as many positions that will be “repurposed” from CDMA jobs, to Global System for Mobile Communications jobs. Known as GSM, the technology is an alternative to CDMA.
“GSM devices are 80 to 85 percent of the global market and CDMA is smaller globally,” Nowak said.
Nokia has been in conflict recently with Qualcomm over Qualcomm’s licensing fees for CDMA patents. Nowak says this isn’t the primary cause of Nokia’s remodel.
“It’s the overall CDMA ecosystem and, yes, licensing royalties are a piece of that ecosystem, but a whole lot of pieces are involved,” Nowak said.
“You can’t say it’s completely unrelated but it’s not the reason why we’re doing this.”
, Andy Killion
