Tue Mar 17, 2009 4:05 pm
Nokia, the world's leading mobile phone maker, said today it planned to lay off 1,700 people worldwide as part of cost-cutting measures to offset falling handset prices and sales.
The Finnish company said the plans will affect several sectors, including its device and markets units, as well as at its corporate development and global support divisions.
"The number of employees we have to reduce is 1,700," Nokia spokeswoman Arja Suominen said, adding that details would be announced after the company begins negotiations with employees.
In January, Nokia warned of major cost-cutting measures after its fourth-quarter net profit crashed 69 percent to $744 million.
Last month, Nokia said it will close a research center, cut up to 320 jobs and temporarily lay off 2,500 workers. It also announced a global voluntary resignation program, open to employees until May 31, in a move aimed at cutting personnel by 1,000.
Like many other companies, Nokia was caught off guard by the speed with which the global financial crisis spread last year, hitting its sales before it could ramp down costs to offset the impact.
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