Nokia said the job cuts will affect workers in the devices and marketing segments as well as employees in corporate development and global support. The workforce reduction accounts for slightly more than one percent of Nokia's approximately 125,829 employees as at the end of 2008.

Nokia said the latest cost-readjustment actions would build on previously announced plans to lower its operating costs as demand for wireless handsets drop off from the steaming double-digit growth the company had enjoyed for the last years.

In February, Nokia announced it would offer voluntary resignation packages to employees and institute a range of other cost-cutting programs in 2009, including "wider use of short-term unpaid leaves and sabbaticals."

Employees would also be encouraged to "take holiday as time off instead of taking cash compensation," the company said.

Also in November, Nokia said it would rationalize its research and development as well as manufacturing operation to reduce costs in response to sluggish sales in its key wireless handset business.

The series of job cuts and other cost-control programs follow an unusually tough outlook for the Nokia, which now sees worldwide mobile handset shipment dropping 10 percent in 2009.

By: DocMemory
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