Nokia to shed another 1,700 jobs

The telecoms group has embarked upon a further round of worldwide job cuts as the recession hits mobile phone sales

Nokia is cutting another 1,700 jobs around the world, including an undisclosed number in the UK, as it slims down to cope with a fall in demand for mobile phones.

The handset group plans to shed staff across its divisions, including sales and marketing, research and development and its corporate offices.

Nokia, which runs UK offices in London, Farnborough and Cambridge, said it was determined to cut costs to weather the recession.

"Nokia plans to scale sales, marketing and technology management to match the pruned portfolio and global consumer demand," the company said this morning.

A spokeswoman said 700 jobs will be lost in Finland, with a smaller number of jobs also being cut in the US and the UK. She added that many other countries would be affected but to a lesser extent.

Nokia has disclosed the departments which are likely to be affected, but staff will not be told whether they will lose their jobs until the company has consulted with unions and employee representatives.

Network operator Vodafone warned in February that the mobile phone industry is suffering as cash-conscious consumers hold onto their existing phones for longer, rather than opting to upgrade to the latest models.

Nokia warned in January that it expected the worldwide mobile phone market to shrink by 10% this year.

Today's cuts are part of a plan to cut costs by €700m (£647m), and are on top of 600 job cuts announced in November. Last month, the company launched a voluntary redundancy programme and is looking for 1,000 employees to sign up. "Several hundred people have already applied," said the Nokia spokeswoman today.

Contributor

Graeme Wearden

The GuardianTramp

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