15 Jun 2012

More job cuts at Nokia

5:02 am on 15 June 2012

Nokia is to lay off another 10,00 employees - or a fifth of its workforce - worldwide by the end of 2013.

The Finnish mobile phone maker says it aims to return to profitable growth by sharpening strategy and significantly reducing its operating expenses.

The cuts will bring the total at the Finnish group since September 2010 to more than 40,000.

Nokia will also book additional restructuring charges of about 1 billion euros ($US1.3 billion).

Its shares have slumped more than 70% since February 2011.

In a statement, chief executive Stephen 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,"

The company hopes to complete the closures and redundancies by the end of 2013. It expects the process to cost 650 million euros this year and 600 million euros next year.

The overall aim is to reduce core operating costs to 3 billion euros per year.