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Nokia to cut up to 10,000 jobs

As losses deepen, the phone company launches the next phase of its cost-cutting programme.

Nokia continues to suffer as it cedes market share to competitors such as Apple and Google. The Finnish phone-maker has now announced that it will cut up to 10,000 jobs globally by the end of 2013 as part of its cost-reduction measures, following a second profit warning in nine weeks.

Research projects are expected to bear the brunt of the cuts: facilities such as its R&D centre in Ulm, Germany, will close, as will its manufacturing plant in Salo, Finland.

As part of the programme, Nokia is planning to invest in location-based services, which it hopes to extend to new industries.

Nokia will also broaden the price range of the Lumia phone and further develop its Series 40 and Series 30 devices, as well as investing in phone technologies such as the Nokia Browser.

Stephen Elop, president and CEO of Nokia, said:

We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia.

We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services. However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions.

In addition, the company has acquired assets from the Sweden-based Scalado, which is expected to strengthen its imaging assets.