Phone-Making Titan Eliminates 15,000 Jobs Worldwide

20.09.2017 • Switzerland

Olivier Perrin – The Brave Little Economist (Switzerland) –

Dear reader,


Nokia plans to remove 597 jobs in France and this does not happen.

Yet it is as usual you will see … And it is sad to die, including the deluge of imbecilities of the subsidized press.

I say that the Finnish group has been phoning for a long time. He sold his brand to an investment fund and refocused onnetworks, that is, the entire infrastructure that allows you to do a high-definition teleconference with Australia and Japan simultaneously while jogging.

It does not look like anything these days but it was necessary to install:

  • near100,000 antennas in France alone;
  • cables running one million kilometers to the bottom of the oceans[1];
  • put hundreds of satellites in orbit …

While recording the explosion of the volume of data exchanged by telephone: they weremultiplied by 18 in the world over the last 5 years[2].

You can imagine the tour de force, the incredible genius deployed by armies of engineers and technicians …And today we want to throw them out?

The Curse of Alcatel

The story begins in early 2016 when Nokia bought the Franco-American groupAlcatel-Lucent, a network giant in a permanent social plan:2000-2005,2008,2009,2012,2013,2014,2016,2017.

13 years of social plans in 18 years have reduced the number of employees from 280,000 to 60,000 …-80%

Alcatel-Lucent is the story of two single-legged companies who have married to finally manage to walk … But have never managed to get in rhythm.

It’s a phenomenal mess and early 2016,we reproduced the same errors, the same story… This time by marrying Alcatel-Lucent to Nokia … Company also in chronic depression, still sounded by its descent into hell, ejected in less than ten years from a market of which it was the undisputed leader and admired.

Obviously, all the possible promises were made at the time of the marriage … Notably the maintenance of the French employees and even the hiring of new ones.

Andwham, we learn today that the evil Nokia does not keep his promises.

Where is the problem ?

First, the problem is not only French. The group is eliminating 15,000 jobs worldwide, or 15% of its employees: no company does this cheerfully.

But the announcement must have a particularly bitter taste for ex-Alcatel who are already survivors of a multitude of social plans and still see no end to their ordeal.

The title of the group’s annual report in 2016 is evocative: “rebalancing to grow “. In the felted world of corporate communication, translate:there is fire

How is it that countries that are the best engineers in the world, rich in success and barely believable achievements, performing titanic tasks brilliantly and humbly do not know how to sustain their groups of network infrastructures?

Especially sinceit is not the work that is lacking: it is about developing the 5th generation of mobile networks the “5G” which promises to be a revolution compared to the 4G to connect cars, objects of any kind and making obsolete the domestic connections.

It’s in a booming area that Nokia suffers!

Unfair competition

Deploying networks on entire continents is not the work of an SME.

In Europe there are only Nokia and Swedish Ericsson as major players in the market. And they are undergoing fierce competition from two groups:Samsungin South Korea and above allHuaweiChina, the world’s largest network infrastructure group.

Both groups benefit from total public support in addition to labor costs lower than European standards.

They have made mobile networks 5G national priorities in both China and Korea and benefit from the largesse of a liberal European Union as well as the protection of their states:

Huawei makes 30% of its revenue in Europe, Nokia 10% in China and Ericsson 12%.

Huawei’s revenues in Europe are even twice as high as those of Nokia and Ericsson combined! [3]

Moreover, Huawei has created a research center of 100 people in Paris: in addition they siphon our know-how with our blessing.

Find the mistake.

The Price of Free Trade

Of course, you will be told:if the Chinese and Koreans are better than us for networks, why spend more to do them ourselves?

very well, we know the refrain: it is the price to pay to afford “the luxury of having an iPhone”.

And what a luxury, the latest version of the famous phone allows you to turn into virtual dung and besides prefigure the world’s largest copying system thanks to facial recognition (integrated lie detector?).

But there is a big problem before even wondering about the legitimacy of this vaguely agonizing revolution:

  • Europe can notimpose fierce and unfair competitionon one side and;
  • the French stateoblige Nokia to keep jobs from the other, while the group is in chronic major difficulty.

With such strategies, everybody is insane: trade unions, bosses, employees, politicians, the general public …

It is as if you were given a pistol with corks to defend you against a platoon armed to the teeth before you reproach your failure … It would be fun if it were not so tragic.

And it has been going on for 20 years!

One can not say that one discovers the problem. Imagine employees who have spent close to half their working lives on a social level.

Maybe it’s time to take matters into their own hands.

Ah but in fact no … France has embarked onthe forced-on installation of the optical fiberto serve the protectedPatrick Drahi and its companyNumericable. A project worth 7 billion euros, key to the plan«Very Very High Speed ​​France»in which the State invests 3.3 billion euros. By then, the 5G will have made this colossal effort obsolete but it does not matter, it is what is called“The strategic state”or how to pass big gifts to buddies as citizen engagement. [4]

And on the European side, Brussels has committed 700 million euros for the 5G by 2020 (including a part for Huawei) …

Only Orange and École des Mines-Telecom are part of the consortium in France against 9 German groups and 9 in Northern Europe (out of 28). The headquarters of Nokia in Finland as well as its German and Polish subsidiaries are part of the consortium … But not France. [5]

Nokia France may well die … At least they say it in front.

In any case, I do everything I can to get rid of these people.

To your good fortune

Olivier Perrin

-Read more at (French)-

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