Keith Nowak, a company spokesman, said that Nokia is "changing strategy" and focusing less on its Code Division Multiple Access operations, resulting in a reduced need for manpower.
Qualcomm Inc.'s ownership of thousands of patents on the technology, also known as CDMA, has created conflict between Qualcomm and Nokia over Qualcomm's licensing fees.
Analysts believe these disputes directly affected Nokia's decision to discontinue CDMA operations.
"(Nokia's) CDMA is exceedingly difficult," said Nowak. "We're doing our own R&D and manufacturing — our own everything — and it was financially prohibitive."
Nokia will begin a more outsourced approach to research and development and manufacturing related to its CDMA business, but it will continue marketing, servicing and selling CDMA products.
According to Nowak, all 1,100-plus existing positions at Nokia's research facility near Poway will be eliminated during the next few months. However, many of the jobs will turn over into positions more consistent with Nokia's current strategy.
"Everybody will know exactly when their current job is slated to end," Nowak said.
"The new jobs for the new business model will be posted and everybody will have an opportunity to apply for the 500 to 550 jobs."
With only 500 to 550 jobs available for 1,100 employees, Nokia is ready to assist its exiting employees.
"Some people won't apply for the new jobs and some will just take their severance," said Nowak.
"Since there's still a great possibility that there will be more applicants than there are positions, they will be offered severance and outplacement services."
Nokia's new positions will focus on maintaining relationships with companies that receive outsourced CDMA work, as well as many positions that will be "re-purposed" from CDMA jobs, to Global System for Mobile Communications jobs. Known as GSM, the technology is an alternative to CDMA.
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