“Nokia said it would lay off 1,700 people worldwide to cut costs, as the global economic downturn strikes deeper into the mobile phone sector… The job cuts will affect several sectors, including its devices and markets units, the corporate development office and global support functions,” The Associated Press reports. “Nokia shares plunged more than 3 percent to close at US$11.27 in Helsinki.”
“Nokia gave few details except to say that the job cuts include 700 in Finland, where it employs some 13,000 people, and that its operations in the United States and Britain also would be targeted,” AP reports.
“Tuesday’s announcement came as the industry bellwether continues to struggle with falling demand and handset prices after a major setback during the last quarter of 2008,” AP reports. “In January, Nokia warned of imminent cost-cutting measures after revealing its fourth-quarter net profit crashed 70 per cent to 576 million ($744 million). It also lost market share, which fell to 37 per cent from 38 per cent in the previous quarter and 40 per cent in the fourth quarter of 2007.”
“Nokia said it would aim for annual savings of 700 million at its handset unit, but gave no details at the time,” AP reports. “Last month, Nokia said it will close a research centre, axe up to 320 jobs and temporarily lay off 2,500 workers in Finland. It also announced a global voluntary resignation program, open to employees until May 31, in a move aimed at cutting personnel by 1,000.”
Full article here.
MacDailyNews Take: Verilöyly.
[Thanks to MacDailyNews Readers “Finn” for the translation and “James W.” for the heads up.]