Nokia Selling Headquarters, As Part Of Cost Saving Effort

Nokia Selling Headquarters, As Part Of Cost Saving Effort
<a href="">Hermann</a> / Pixabay

In an interview today, Nokia Corporation (NYSE:NOK) spokeswoman, Maija Taimi revealed to Reuters that the company intends to sell non-core parts like real estate, including its Espoo, Finland Headquarters. Subsequent probing by CNET shed more light on the matter, after Nokia spokesman, Brett Young stated that embattled handset maker was not planning to relocate. Rather, Nokia Corporation (NYSE:NOK) wants to lease the space back from the new owner.

Nokia Selling Headquarters, As Part Of Cost Saving Effort

The move is deemed to be a part of Nokia’s widely documented cost cutting program. Selling non-core parts like its headquarters could be a game changing move. If Nokia Corporation (NYSE:NOK) pushes through with the sale, it could net a possible figure between $259 and $388 million. This is according to a valuation published by Iltasanomat, a Finnish newspaper. While this will not individually plug the cash drain, it will be instrumental if coupled with other cost cutting strategies.

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Nokia has however not initiated any sale (at the time of writing). Th company is merely exploring its options in light of its financial woes. It is also uncertain whether potential buyers are actively looking at the company.  Nokia is most likely going to push forward with the sale. The company had noted earlier in July that it would sell properties in an attempt to overhaul its cost cutting programs.

Clutching at a straw

While hope has not hit rock bottom, it is evident that Nokia Corporation (NYSE:NOK) is clutching at a straw. Nokia’s alarming bottom line reflects the high costs it incurs and poor sales strategy. As of the moment, the company has focused its efforts on boosting the popularity of its recently launched Lumia 920.

The Lumia 920 flaunts a notably larger screen than the iPhone 5, its bitter rival. A section of industry analysts also have reason to believe that the Lumia 920 is technologically superior to the iPhone 5, and that the latter’s popularity stems from what they describe as ‘cool brand perception’. Nokia Corporation (NYSE:NOK) will use every weapon in its arsenal to market the Lumia 920 in light of heightened competition and pressure to improve sales.

Frenzied Lumia marketing has also been coupled with two product launches in the mid-range market. Towards the end of September, the troubled company unveiled the Asha 308 and the Asha 309, both of which are expected to retail for about $99.

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