The move is an indication of a new ruthlessness by the cellular phone market leader that is determined to protect its bottom line after margins have been squeezed by price competition.
No figure for the amount of the reductions was given ahead negotiations with employee representatives. However, the company, which employs 3,000 people in its multimedia operations, said up to 250 staff in Finland and a few hundred more in Germany and elsewhere will be laid off.
Nokia received a wake-up call last year when it lost market share after misjudging market trends, and it is facing particularly fierce competition from Samsung. It has recovered lost ground only by reducing prices, and cost cuts have been inevitable to protect profits.
One strong indicator that the company is enjoying strong sales is an announcement that it plans to hire 100 to 200 more workers at one of its largest handset plants at Salo, Finland, where 4,500 people are employed.
