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10,000 jobs to go at Nokia

A further 10,000 jobs are set to go at Nokia after second quarter losses from its mobile phone business were larger than anticipated.

This brings total cuts at the group since Stephen Elop took over s chief executive in September 2010 to over 40,000. The firm is also set to book an additional restructuring charge of around 1 billion euros.

Since February 2011 Nokia shares have fallen by more than 70%.

In a statement Mr Elop 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.”

Sites in Finland, Germany and Canada are all set to close, and it is hoped that all closures and redundancies will be complete by the end of 2013. The process is expected to cost around 650 million euros in 2012, and 600 million euros in 2013.

It is hoped that this will help to reduce core operating costs to 3 billion euros a year.

The firm has also announced plans to sett Veru, its luxury handset maker. These phones are made from precious metals, and are often encrusted with diamonds and sapphires, selling for as much as $310,000

This was posted in Bdaily's Members' News section by Ruth Mitchell .