The never-ending pains of Nokia.

Nokia just issued a press release announcing another 10,000 jobs will be cut as it closes factories and facilities around the world, specifically targeting its Devices and Services group.  For Finns, it's got to be painful to hear that Nokia's going to close their Salo facilities.

It appears that Stephen Elop is following a tried and trite strategy to buy time by slashing expenses.  This implies that the Lumia 900 is not the big seller that they were expecting, and that overall sales of Windows Phone models are struggling to meet lowered expectations.

So what's the reason for buying time?

Perhaps he's hoping to see if Windows 8 (tablets and phones) will positively affect Nokia's fortunes, and that he needs to buy a few extra quarters to let his strategy gain a foothold.

Or it could be that he's cutting expenses now, and writing off the consolidation costs, to make it more attractive to a prospective buyer.  That rumor of a possible Samsung buyout of Nokia seems a little bit more plausible now, doesn't it?

An imagined dialog between Nokia and Samsung:

Elop: Heeeey Lee buuuuuuddy, how's everything going?
Lee: Stephen?  How the hell did you get this number?
Elop: Oh well, a friend passed your number to me.
Lee: Damn that Ballmer!  What do you want, Stephen?
Elop: Leeeeeeee, buuuuuuuudy!  Do you want to buy us out?
Lee:  Buy Nokia?
Elop: Yep!
Lee:  But aren't you losing market share every month?
Elop: Well sure, if you want to put it that way.  But on the other hand, our market share plus your market share equals double the market share of your frenemy, Apple.
Lee:  Stephen, are you serious?  My father always taught me to never buy into a losing position.
Elop: Hey, we've got a bunch of patents that you could use against your frenemies, you know?
Lee:  Hell no...you've got too many liabilities.
Elop: Leeeeee buuuuuudy, what if we slash expenses and write off consolidation so that you won't assume those liabilities?
Lee:  Stephen I tell you what, we'll talk after you act.  If your stock sinks far enough, we'll consider making an offer.
Elop: Promise?
Lee:  No.  And why hasn't Microsoft bitten?
Elop: Come on Lee, you know Ballmer.  He's playing hard ball, looking to get us for practically free.
Lee:  Look, don't call me until after you've slashed your operating expenses and written off those consolidation costs, okay?
Elop: Deal!
Lee:  No Stephen, that wasn't a....
---click---
Lee:  Stephen?  Hello Stephen?  Oh ha ha, Stephen, funny guy.  Stephen?