STRUGGLING MOBILE PHONE maker Nokia is to cut its workforce by around 10,000 people before the end of 2013 in an effort to turn the company’s finances around.
In an announcement this morning, the Finnish company also announced the departure of three of its top executives and warned of a larger than expected loss for the second quarter of this year.
The company has an office in Dublin but it is not yet known if jobs in Ireland will be affected. Facilities in Germany, Canada and Finland are all to be closed as part of the cuts across the company.
The company’s chief executive Stephen Elop said the job losses are a “difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength”.
The company plans to cut costs by around €1.6 billion by the end of 2013.
The move comes after Nokia suffered a huge €929 million net loss in the first three months of this year as sales plunged, especially in the smartphone market.
The company has been fighting stiff competition from the likes of the iPhone and Android phones which have dominated the smartphone market. Bloomberg reports that Nokia has lost more than €70 billion in market value since Apple introduced the iPhone in 2007.