Nokia
Corp. will lay off 10,000 jobs globally and close plants by the end of
2013, the company said Thursday, in a further drive to save costs and
streamline operations.
Nokia said it will shut some research and development projects, including in Ulm, Germany, and Burnaby, Canada, and close its core manufacturing plant in Finland — in Salo — where it will only maintain research and development operations.
"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," Nokia CEO Stephen 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."
Nokia also gave an updated outlook, saying that "competitive industry dynamics" in the second quarter would hit its smartphone sector to a "somewhat greater extent than previously expected" and that no improvement was expected in the third quarter.
The company's share price plunged more than 7 percent to €2.05 ($2.63) in morning trading in Helsinki.
Although the Finnish cellphone maker said it plans "to significantly reduce its operating expenses," it will continue to focus on smartphones as well as cheaper feature phones and intends to expand location-based services.
Nokia said it will shut some research and development projects, including in Ulm, Germany, and Burnaby, Canada, and close its core manufacturing plant in Finland — in Salo — where it will only maintain research and development operations.
"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," Nokia CEO Stephen 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."
Nokia also gave an updated outlook, saying that "competitive industry dynamics" in the second quarter would hit its smartphone sector to a "somewhat greater extent than previously expected" and that no improvement was expected in the third quarter.
The company's share price plunged more than 7 percent to €2.05 ($2.63) in morning trading in Helsinki.
Although the Finnish cellphone maker said it plans "to significantly reduce its operating expenses," it will continue to focus on smartphones as well as cheaper feature phones and intends to expand location-based services.
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