Nokia could sell HQ for around $250M to cut costs [updated]

Update: A Nokia spokesperson tells The Verge that it doesn’t plan to move but could end up leasing back its headquarters: “Nokia is reevaluating all noncore operations, including its real estate. As with most companies whose core business is not in owning real estate, it makes common business sense not to tie assets in real estate property but rather invest and focus in its core operations.”

Original story: Is Nokia in such bad shape that it’s looking to sell is own headquarters?

That’s the story according to Reuters, which reports that Nokia could sell off its Espoo, Finland location in an effort to cut costs.

Nokia confirmed the report to us but noted that selling its building doesn’t mean its going anywhere. “Yes, we are considering selling our headquarters and leasing it back. We have no plan to move out of our HQ,” a company spokesperson said.

Nokia’s attempts to save money have so far focused on laying off employees and relocating its supply lines.  Selling its headquarters may be a symbolically damaging, but it’s a smart move for a company that’s trying to turn fortune in its favor.

Estimates on the property’s value range from $259 million to $388 million, which is roughly a quarter of what Nokia lost during its second quarter this year. So the sale would help, but probably not by much.

The bigger problem, of course, is product execution, an area in which Nokia has been floundering for quite a while. Its Lumia smartphones efforts haven’t exactly panned out, though it isn’t giving up on Windows Phone just yet. Nokia isn’t likely to make any big moves until after its sure that its latest Lumia’s aren’t selling.

Photo: Nokia