Bolaji Ojo, EETimes
6/14/2012 3:31 PM EDT
The announcement earlier today by Nokia Corp. that it will eliminate one of every five jobs in its mobile handset division and remove three senior executives didn't impress investors who promptly dumped the stock, driving down the company's market value by more than 15 percent in intraday trading.
CEO Stephen Elop might have meant to signal resolute leadership in the midst of an ongoing crisis at the wireless handset vendor but nothing in today's announcement adds clarity to what the future holds for the company or confirm it will be able to right the sinking ship. Investors have seen reorganization actions like these before at other endangered companies and they know where it's leading Nokia. By the end of the current year, Nokia will be a much smaller company on a revenue and stock valuation basis and its future will be even more in doubt notwithstanding the modest success its Lumia phone has recorded in the market.
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