Nokia Makes the Right Cuts

Nokia (NOK 1.14%) announced a series of layoffs today and the market reaction was a bit mixed. In the video below, Motley Fool tech and telecom analyst Eric Bleeker tells us why he sees this as a very positive move for the long term. He tells us to try not to focus so much on the short-term market fluctuations, and instead keep an eye to how Nokia is repositioning itself from a top brand in inexpensive commodity phones to its goal of cementing itself as a solid third-place competitor in the smartphone market. To do that, reducing its costs by making employment cutbacks is a necessary (though unfortunate) move.