Nokia cuts 10,000 more jobs as losses deepen

In a second profit warning in nine weeks, Nokia said on Thursday that its phone business would post a deeper-than-expected loss in the second quarter due to tougher competition, which it expected to continue.

Nokia which once was at the pinnacle of success among mobile manufacturers, is now losing market share at a fast rate as Apple, Samsung and Google start climbing the ladder.

Chief Executive Stephen Elop is placing hopes of a turnaround on a new range of smartphones called Lumia, which use largely untried Microsoft Corp software. But Lumia sales have so far been slow, exasperating investors who have seen its stock crash more than 70 percent since it announced the software switch in February 2011.

“The job cuts and profit warning underline the seriousness of the challenges Nokia is facing, particularly in light of the eye-watering competition from Apple and Samsung,” said Ben Wood, head of research at CCS Insight.

The 10,000 job cuts, which include the closure of Nokia’s only plant in its homeland Finland, bring total planned cuts at the group since Elop took over as chief executive in 2010 to more than 40,000 staff, or every third worker.

Of the latest job cuts, 3,700 will take place in Finland, where the firm will also close its plant in Salo – the last major cellphone manufacturing site in western Europe, the cradle of the global industry.

Nokia also said it would sell luxury phone business Vertu to venture firm EQT and revamp its management team.