Nokia confirms 1,700 job losses

 

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By Reuters

Posted on 17 Mar 2009 at 11:49

Nokia will slash 1,700 jobs over the next few months because of falling demand, the company has announced.

Nokia confirmed in January it aimed to cut annual costs at its key handset unit by more than 700 million euros in order to counter plunging demand.

However, the company now says that, in addition to its handset unit, it will also cut jobs in its marketing unit, corporate development office and global support functions.

Up to 700 jobs will be cut in Finland.

The overall mobile phone market is expected to contract by 10% this year, as consumers rein in spending and handset sellers try to clear out unsold phones.

Last month Nokia said it was offering severance packages to the first 1,000 employees who volunteered to leave, and cut production at its key Salo plant in Finland.