Nokia set to slash 10,000 jobs

Beleaguered mobile vendor aims for dramatic cost cutting after second profit warning

Finnish mobile vendor Nokia is planning to cut up to 10,000 jobs and close more plants by the end of 2013.

The phone maker is suffering from deeper than expected losses due to tougher competition, mainly from Apple and Samsung.

As reported on ChannelWeb recently, the vendor was ousted from its global top spot by Samsung in the smartphone market last month.

In a Q2 profit warning the vendor confirmed the job cuts, and said it would be closing some research and development projects, including Ulm in Germany and Burnaby in Canada. It is also set to close its manufacturing plant in Sale, but said it would keep its R&D operations there.

Stephen Elop (pictured), chief executive of Nokia, 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.

"We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities," he said.

This development is the latest in a line of gloomy news stories for the firm.

Last year it revealed plans to slash 3,500 jobs in Q1 2012, along with the closure of its Cluj manufacturing facility due to its high-volume Asian factories providing greater scale and proximity benefits. At the same time it said it would review the long-term role of its manufacturing operations in Salo in Finland, Komarom in Hungary and Reynosa in Mexico.

Elop said at the time that the changes would see Nokia emerge as a more "dynamic, nimble and efficient challenger".