Submitted 1 year ago by throws_lemy@lemmy.nz to technology@lemmy.world
https://www.marketwatch.com/story/nokia-to-cut-as-many-as-14-000-jobs-as-profit-drops-by-69-96ccdb59
Remember, this isn’t because they’re at record losses, or that they’re breaking even.
It’s literally because they’re not making enough profit.
This is the freemarket system functioning as intended.
A company can still be making money, still be above water, but decide their shareholders need to be even better off and they will decide they deserve money more than people struggling and making it by barely check-to-check.
Not quite. Ultimately it’s the shareholders making this decision. They twist arms on the board of directors, who in turn twists on the CEO. If the CEO doesn’t make a call like this, they simply fire him and find someone who will.
And it’s not necessarily that the shareholders want more money. But they sure as hell don’t want to lose money. And they are ATM.
NOKIA -6.44% NOK -5.16% ERIC.B -0.80%
Hell, I might be one of those shareholders. Maybe there’s a spot of Nokia stock in my Roth IRA, hell if I know. But the people managing my IRA know, and they’ll drop Nokia if it keeps losing value. And if Nokia keeps losing value, they won’t make payroll, those people are getting fired anyway.
If they were a private firm, there wouldn’t be any of this horse shit, but then they couldn’t raise capital to expand, take on a major initiative, etc. Sucks either way doesn’t it?
IIUC, profit doesn’t include obligations to investors.
Nice.
Nice.
Do we have to recycle everything from Reddit?
Possibly helpful graph to show what this actually means statista.com/…/number-of-nokia-employees-since-20…
What happened in 2015/2016?
They acquired Alcatel-Lucent, which had about 50k people at the time.
It sucks all those people lost their jobs but…
69
Heh.
Still made a profit, but have to fire all you. Sorry, gotta keep Wall Street happy. Byeeeee
This is the crux of the problem with public companies, and why they all do extremely stupid things.
That’s how they made the profits
I thought Nokia was dead after Microsoft gutted it.
Nokia is not just a phone company, it is also a telecommunications equipment provider. They set up towers, 5G hardware etc and that part of the company is basically B2B.
And a very healthy patent portfolio.
This is a different company. They shuffled names around.
What does Nokia even sell these days?
They mainly make telecom equipment. Also the modern Nokia phones are made by a company called hmd global. Not Nokia proper.
TiL Nokia had enough 14000 employees still
Niceee
Only 31% profit instead of 100%? Outrageous!
That’s not how it works
Lol yeah. 100% profit would mean literally no operating expenses.
^Most ^economically ^literate ^Lemmy ^user.
69% is the number to decide in such businesses.
Nice
I had to check the date of the article, I thought it was one from 2013.
But as I can see they only laid off 10,000 in 2013, they surpassed themselves and lay off 14,000 this time.
Last time I wanted to buy a smartphone from Nokia they didn’t even have a phone in the higher price segment. I think the highest was 500 Euro and the components were worse or only slightly better than my old phone. If they had better phones, I’d buy them.
Nokia is not making phones anymore. Those on the market are from HMD Global, a Chinese company which bought the brand name Nokia for mobile.
HMD Global is a Finnish company, run by ex-Nokia executives. It's pretty nuch the old Nokia, seperated enough to not bankrupt the original company if it goes bad.
The phones are no more Chinese than Google and Apple.
I don’t think Nokias main business is phones these days but I may be wrong. I was under the impression it was telecommunications. Microwave wireless, networking equipment etc.
They’ve fallen so far since the indestructible Nokia 2280
Hexagon@feddit.it 1 year ago
Yeah, fuck people, it’s all about the shareholders
synceDD@lemmy.world 1 year ago
Are you trying to tell us you care for your ceo and you expect the same from him? Lmfao
Squizzy@lemmy.world 1 year ago
What’s the alternative though, hire as many people as possible and fail?
If you are losing market share and profits then something needs to change, if you can cut costs of that. It’s a ridiculously big number and incredibly unfortunate but it’s unrealistic to think it’d be anything else
SlikPikker@lemmy.ca 1 year ago
Legally, they aren’t even allowed to care.
They have a duty to maximize profits.