Nokia Announces 1,700 Job Cuts

Nokia has announced plans to cut a further 1,700 jobs in the Devices and Markets units as well as in its Corporate Development Office and global support functions. Nokia says that it plans to reduce sales, marketing and technology management to match the pruned portfolio and global consumer demand; address the marketing and other activities that will no longer be integral following the Symbian acquisition; streamline the Devices R&D organization; and increase efficiency in certain global support functions.

Altogether these plans will affect approximately 1,700 employees globally - with around 700 jobs being lost in Finland.

Where applicable, Nokia will start consultations with employee representatives about these plans.

Nokia said in January that it is forecasting a 10 percent decline in industry sales due to the economic downturn and saw sales drop by 15% in the final quarter of last year. Nokia expects the decline to be greater in the first half than in the second half of the year. This is an update to Nokia's earlier estimate that 2009 industry mobile device volumes would decline 5% or more from 2008 levels.

The company also warned at the time that more limited availability of credit had reduced the purchasing ability of some its trade customers.

Posted to the site on 17th March 2009