Nokia To Slash 10K Jobs Worldwide

Nokia is cutting another 10,000 jobs globally and has warned that second-quarter losses from its mobile phone business will be larger than expected.

The cuts bring total planned job cuts at the Finnish group since Stephen Elop took over as chief executive in September 2010 to more than 40,000. Nokia will also book additional restructuring charges of about 1bn euros (£811m; $1.3bn). Nokia shares closed down 18% and have slumped about 70% since February 2011.

Last year, Nokia announced it would phase out its own Symbian smartphone operating software and, for its smartphones, focus on Microsoft’s Windows Phone operating system. Nokia will close its last remaining plant in Finland, at Salo, although it will continue to do research there. Research and development sites at Ulm in Germany and Burnaby in Canada will also close. The company hopes to complete the closures and redundancies by the end of 2013.

It expects the process to cost 650m euros ($817m) this year and 600m euros ($754m) next year. The overall aim is to reduce core operating costs to 3bn euros ($3.8bn) a year. Slashing costs should moderate Nokia’s operating losses, but Lee Simpson, an equities strategist at Jefferies, said: “It probably isn’t enough.”

Nokia did not give guidance on its forecasts for revenue on Thursday, but according to research by the consultancy Gartner, it has lost market share to both Apple and Samsung to become the world’s third biggest seller of smartphones.

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Source: Digg

Image: Reuters