NOKIA to lay off 10,000 jobs and closing of plants by the end of 2013

NOKIA announced on Thursday on the lay off of 10,000 jobs globally and plants closed by the end on 2013. The cut will affects the research and development in the country of Germany and Canada as well the manufacturing plant in Salo.

The Finnish cellphone maker is fighting fierce competition from Apple Inc.'s iPhone and other makers using Google Inc.'s popular Android software, including Samsung Electronics Co. and HTC of Taiwan. It is also being squeezed in the low-end by Asian manufacturers making cheaper phones, such as China's ZTE.

The Nokia plans only to reduce its operating expenses and will focus on smartphones and feature phones and intends to expand location-based services. But as the 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.

CFO Timo Ihamuotila said,” "Nokia is significantly increasing its cost reduction target for devices and services in support of the streamlined strategy announced today”. The company believe that through their new plan they can reach the target sales for profit. Nokia intends to maintain its strong financial position while proceeding aggressively with actions aimed at creating shareholder value.

Source:AP