Nokia - Company Announcement

Nokia starts measures to align workforce and site operations with new strategy

Nokia Corporation
Stock exchange release
April 27, 2011 at 11.15 (CET +1)

Espoo, Finland - To deliver on its new strategy, Nokia today announced plans to
align its global workforce and consolidate site operations. These measures are
part of Nokia's target to reduce its Devices & Services non-IFRS operating
expenses by 1 billion euros for the full year 2013 in comparison to the full
year 2010, as announced last week. 

Earlier today, Nokia announced plans to form a strategic collaboration with
Accenture that would result in the transfer of Nokia's Symbian software
activites, including about 3,000 employees to Accenture. In addition, Nokia
also plans to reduce its global workforce by about 4,000 employees by the end
of 2012, with the majority of reductions in Denmark, Finland and the UK. In
accordance with country-by-country legal requirements, discussions with
employee representatives started today. 

Nokia also plans to consolidate the company's research and product development
sites so that each site has a clear role and mission. Nokia expects the
expansion of some sites and the contraction or closure of others. 

All employees affected by the reduction plans can stay on the Nokia payroll
through the end of 2011. Nokia expects personnel reductions to occur in phases
until the end of 2012, linked to the roll-out of Nokia's planned product and
services portfolio. During this period, Nokia intends to ramp up its capacity
for the development of Nokia smartphones based on the Windows Phone platform,
the company's broad range of mobile phones and its services portfolio. 

“At Nokia, we have new clarity around our path forward, which is focused on our
leadership across smart devices, mobile phones and future disruptions,” said
Stephen Elop, Nokia president and CEO. “However, with this new focus, we also
will face reductions in our workforce. This is a difficult reality, and we are
working closely with our employees and partners to identify long-term
re-employment programs for the talented people of Nokia.” 

Nokia is launching a comprehensive social responsibility program for employees
and the communities likely to be affected by the personnel reductions. The
program will be led locally, with local partners and stakeholders, and senior
management support. 

“We are offering those who are losing their jobs a range of options, from
individual re-employment support and re-training to making investments to
promote innovation and working with a variety of partners to create new
opportunities,” Elop continued. 

About Nokia
Nokia is committed to connecting people to what matters to them by combining
advanced mobile technology with personalized services. More than 1.3 billion
people connect to one another with a Nokia, from our most affordable
voice-optimized mobile phones to advanced Internet-connected smartphones sold
in virtually every market in the world. Through Ovi (www.ovi.com), people also
enjoy access to maps and navigation on mobile, a rapidly expanding applications
store, a growing catalog of digital music, free email and more. Nokia's NAVTEQ
is a leader in comprehensive digital mapping and navigation services, and Nokia
Siemens Networks is one of the leading providers of telecommunications
infrastructure hardware, software and professional services globally. 

FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical
facts are forward-looking statements, including, without limitation, those
regarding: A) the expected plans and benefits of our strategic partnership with
Microsoft to combine complementary assets and expertise to form a global mobile
ecosystem and to adopt Windows Phone as our primary smartphone platform; B) the
timing and expected benefits of our new strategy, including expected
operational and financial benefits and targets as well as changes in leadership
and operational structure; C) the timing of the deliveries of our products and
services; D) our ability to innovate, develop, execute and commercialize new
technologies, products and services; E) expectations regarding market
developments and structural changes; F) expectations and targets regarding our
industry volumes, market share, prices, net sales and margins of products and
services; G) expectations and targets regarding our operational priorities and
results of operations; H) expectations and targets regarding collaboration and
partnering arrangements; I) the outcome of pending and threatened litigation;
J) expectations regarding the successful completion of acquisitions or
restructurings on a timely basis and our ability to achieve the financial and
operational targets set in connection with any such acquisition or
restructuring; and K) statements preceded by "believe,""expect,""anticipate,""foresee,""target,""estimate,""designed,""plans,""will" or similar
expressions. These statements are based on management's best assumptions and
beliefs in light of the information currently available to it. Because they
involve risks and uncertainties, actual results may differ materially from the
results that we currently expect. Factors that could cause these differences
include, but are not limited to: 1) our ability to succeed in creating a
competitive smartphone platform for high-quality differentiated winning
smartphones or in creating new sources of revenue through our partnership with
Microsoft; 2) the expected timing of the planned transition to Windows Phone as
our primary smartphone platform and the introduction of mobile products based
on that platform; 3) our ability to maintain the viability of our current
Symbian smartphone platform during the transition to Windows Phone as our
primary smartphone platform; 4) our ability to realize a return on our
investment in MeeGo and next generation devices, platforms and user
experiences; 5) our ability to build a competitive and profitable global
ecosystem of sufficient scale, attractiveness and value to all participants and
to bring winning smartphones to the market in a timely manner; 6) our ability
to produce mobile phones in a timely and cost efficient manner with
differentiated hardware, localized services and applications; 7) our ability to
increase our speed of innovation, product development and execution to bring
new competitive smartphones and mobile phones to the market in a timely manner;
8) our ability to retain, motivate, develop and recruit appropriately skilled
employees; 9) our ability to implement our strategies, particularly our new
mobile product strategy; 10) the intensity of competition in the various
markets where we do business and our ability to maintain or improve our market
position or respond successfully to changes in the competitive environment; 11)
our ability to maintain and leverage our traditional strengths in the mobile
product market if we are unable to retain the loyalty of our mobile operator
and distributor customers and consumers as a result of the implementation of
our new strategy or other factors; 12) our success in collaboration and
partnering arrangements with third parties, including Microsoft; 13) the
success, financial condition and performance of our suppliers, collaboration
partners and customers; 14) our ability to source sufficient quantities of
fully functional quality components, subassemblies and software on a timely
basis without interruption and on favorable terms, including the disruption of
production and/or deliveries from any of our suppliers as a result of adverse
conditions in the geographic areas where they are located; 15) our ability to
manage efficiently our manufacturing, service creation, delivery and logistics
without interruption; 16) our ability to ensure the timely delivery of
sufficient volumes of products that meet our and our customers' and consumers'
requirements and manage our inventory and timely adapt our supply to meet
changing demands for our products; 17) any actual or even alleged defects or
other quality, safety and security issues in our products; 18) any actual or
alleged loss, improper disclosure or leakage of any personal or consumer data
collected or made available to us or stored in or through our products; 19) our
ability to successfully manage costs, including our ability to achieve targeted
costs reductions and to effectively and timely execute related restructuring
measures, including personnel reductions; 20) our ability to effectively and
smoothly implement the new operational structure for our devices and services
business effective April 1, 2011; 21) the development of the mobile and fixed
communications industry and general economic conditions globally and
regionally; 22) exchange rate fluctuations, including, in particular,
fluctuations between the euro, which is our reporting currency, and the US
dollar, the Japanese yen and the Chinese yuan, as well as certain other
currencies; 23) our ability to protect the technologies, which we or others
develop or that we license, from claims that we have infringed third parties'
intellectual property rights, as well as our unrestricted use on commercially
acceptable terms of certain technologies in our products and services; 24) our
ability to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks patented,
standardized or proprietary technologies from third-party infringement or
actions to invalidate the intellectual property rights of these technologies;
25) the impact of changes in government policies, trade policies, laws or
regulations and economic or political turmoil in countries where our assets are
located and we do business; 26) any disruption to information technology
systems and networks that our operations rely on; 27) unfavorable outcome of
litigations; 28) allegations of possible health risks from electromagnetic
fields generated by base stations and mobile products and lawsuits related to
them, regardless of merit; 29) our ability to achieve targeted costs reductions
and increase profitability in Nokia Siemens Networks and to effectively and
timely execute related restructuring measures; 30) Nokia Siemens Networks'
ability to maintain or improve its market position or respond successfully to
changes in the competitive environment; 31) Nokia Siemens Networks' liquidity
and its ability to meet its working capital requirements; 32) whether Nokia
Siemens Networks' acquisition of the majority of Motorola's wireless network
infrastructure assets will be completed in a timely manner, or at all, and, if
completed, whether Nokia Siemens Networks is able to successfully integrate the
acquired business, cross-sell its existing products and services to customers
of the acquired business and realize the expected synergies and benefits of the
planned acquisition; 33) Nokia Siemens Networks' ability to timely introduce
new products, services, upgrades and technologies; 34) Nokia Siemens Networks'
success in the telecommunications infrastructure services market and Nokia
Siemens Networks' ability to effectively and profitably adapt its business and
operations in a timely manner to the increasingly diverse service needs of its
customers; 35) developments under large, multi-year contracts or in relation to
major customers in the networks infrastructure and related services business;
36) the management of our customer financing exposure, particularly in the
networks infrastructure and related services business; 37) whether ongoing or
any additional governmental investigations into alleged violations of law by
some former employees of Siemens AG may involve and affect the carrier-related
assets and employees transferred by Siemens AG to Nokia Siemens Networks; 38)
any impairment of Nokia Siemens Networks customer relationships resulting from
ongoing or any additional governmental investigations involving the Siemens
carrier-related operations transferred to Nokia Siemens Networks; as well as
the risk factors specified on pages 12-39 of Nokia's annual report Form 20-F
for the year ended December 31, 2010 under Item 3D. "Risk Factors." Other
unknown or unpredictable factors or underlying assumptions subsequently proving
to be incorrect could cause actual results to differ materially from those in
the forward-looking statements. Nokia does not undertake any obligation to
publicly update or revise forward-looking statements, whether as a result of
new information, future events or otherwise, except to the extent legally
required. 

Media Enquiries:

Nokia Communications
Tel. +358 7180 34900
Email: press.services@nokia.com

www.nokia.com