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Nokia to cut 10,000 jobs worldwide

Nokia said Thursday it will cut up to 10,000 jobs worldwide by the end of next year, part of an accelerated cost reduction program at … Continue reading Nokia to cut 10,000 jobs worldwide


Nokia said Thursday it will cut up to 10,000 jobs worldwide by the end of next year, part of an accelerated cost reduction program at the Finnish cellphone maker.

The company also warned that increased competition in the smartphone sector would hit its financial results in the second and third quarters, causing its operating loss margin to be bigger than previously forecast.

These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,” said Nokia CEO Stephen Elop, in a statement.

As part of its cost reduction efforts, Nokia plans to close research and development facilities in Germany and Canada.

Nokia said it plans to focus more on the development of its Lumia phone. The Lumia, which uses a Microsoftoperating system, is Nokia’s attempt to take on Google and Apple  in the cellphone market.

Nokia is not the only cell phone company struggling with the new competition. Blackberry maker Research in Motion, RIMM, has hired Wall Street firms to consider itsstrategic options, which generally means it is considering a sale of the company, and it is plans deep cost cuts that could eliminate jobs.