The global cellphone giant is losing market share to rivals Apple and Samsung and is burning through its cash reserves as well. The company announced that it would lose more than originally expected in its second quarter.
Nokia was once the dominant mobile phone producer but as with other companies such as the Canada based RIM it is losing market share to competitors. The company hopes that a new line of smartphones Lumia will turn its sagging fortunes around. However the software from Microsoft may not compete with its rivals.
A research analyst said:"The job cuts and profit warning underline the seriousness of the challenges Nokia is facing, particularly in light of the eye-watering competition from Apple and Samsung," Nokia based in Finland saw shares drop 10.5 per cent. As well as the only plant in Finland a plant in Canada will also be closed. For more see this article.