TEXT OF STORY
JEREMY HOBSON: Well we’re likely to get the official announcement today about that proposed German takeover of the New York Stock Exchange. In fact, get ready to hear a lot about mergers and acquisitions which are natural for companies that are sitting on a lot of cash. The problem is, when firms merge they often lay people off. Today, there’s a warning of job cuts because of a new alliance between Microsoft and cell phone maker Nokia. Nokia announced the other day it’ll be putting Windows operating systems on its new smart phones.
And as the BBC’s Jon Bithrey reports, that’s not good news for the company’s employees.
JON BITHREY: Nokia’s been falling behind in the smartphone market now dominated by Apple, and Google’s popular operating system Android. This huge deal was supposed to make Nokia competitive once again. But union leaders say 6000 jobs could go in Nokia’s native Finland as it replaces its own operating systems with Windows. The company’s CEO Stephen Elop admits there’ll be a significant cut in headcount — and employees will have to adjust.
STEPHEN ELOP: Every employee has to go through an emotional journey and the emotional journey is difficult because this is such a big change. So there’s a lot of things still ahead, and a lot of work still be done.
Nokia’s investors aren’t too impressed either. Its shares have fallen by a fifth since the deal with Microsoft was announced last Friday. But after the boss compared Nokia to a sinking oil platform in comments last weeks, it seems the company may not have much choice.
In London, I’m the BBC’s Jon Bithrey for Marketplace.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.