Nokia has announced plans to axe 10,000 jobs on a global scale by the end of 2013.
Nokia plans cutbacks to get back to profitability
The mobile phone maker has made the decision in an attempt to cut operating costs and return to sustainable non-IFRS operating profitability in Devices & Services as soon as possible. The move will involve the closure of facilities in Germany, Canada and its home turf, Finland. See also: Samsung hits mobile vendor top spot.
Stephen Elop, CEO of Nokia said: "These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength,"
"We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities."
Looking forward, Nokia said it will focus on broadening the price range of the Lumia range of smartphones. It will also concentrate on location-based services and mapping.
Nokia has ditched its Symbian operating system in favour of Windows Phone 7 but said it aims to develop its Series 40 and Series 30 devices. The firm is in a fierce battle with the iPhone and Android devices which has seen share prices plummet.
The Finnish firm also confirmed the sale of its luxury mobile phone firm, Vertu to private equity company EQT. Nokia will retain a 10 percent shareholding in Vertu.
Timo Ihamuotila, executive vice president and CFO. "With these planned actions, we believe our Devices & Services business has a clear path to profitability. Nokia intends to maintain its strong financial position while proceeding aggressively with actions aimed at creating shareholder value."