Nokia - More Job Cuts. 700 in Finland, 1700 Positions Worldwide

Tuesday, 17 March 2009 10:30

Nokia said the measures, which will affect its Device and Media units as well as its Corporate Development Office and global support functions, are part of previously announced plans to adjust the business to market demand. "Nokia continues to seek savings in operational expenses, looking at all areas and activities across the company," it added.

The company has close to 130,000 employees world-wide.

Like many companies, Espoo, Finland-based Nokia has been hit hard by the slowdown in the economy, reporting a 69% drop in fourth-quarter net profit to €576 million ($746.3 million). Nokia said the economic downturn has led to a rapid decline in consumer demand for electronic goods and the outlook for 2009 has deteriorated.

Research firm Gartner Inc. last week said that global handset sales declined in the fourth quarter and predicted demand will continue to fall until next year.

Gartner said about 315 million mobile phones were sold in the fourth quarter, down 5% from a year earlier, as manufacturers continued to struggle against weak consumer confidence in both emerging and mature markets. In the quarter ended Dec. 31, both emerging and developed markets saw growth of 2% from the previous three months -- the lowest quarter-to-quarter growth ever recorded for a fourth quarter, Gartner said.

Shares in Nokia were down 3.1% at €8.77, underperforming a 1% drop in the wider market in Helsinki, although little changed from earlier trading Tuesday prior to the announcement.

Analyst Greger Johansson at Redeye, which rates Nokia at neutral, said the measures were already largely reflected in Nokia's share price after the company previously said it would trim costs due to the slowing demand.

Source Gustav Sandstrom

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