Nokia has announced major changes in its business, including 10,000 job cuts and management reorganization. In over a year, Nokia cut its earnings outlook by three times.
Nokia was damaged by the competition both from Android devices and from Apple’s iPhone.
The operating loss at Nokia’s main devices will be larger than expected earlier.
The 10,000 jobs, to be cut by the end of 2013, these come close to 14,000 job losses over all and it is expected that the new cost-saving measures will generate €1 billion in rearrangement charges.
The new round of restructuring comes as the combination of Nokia’s continuing fall in mobile sales and company’s accelerating cash burn.
By the end of Q1 2012, Nokia held €4.8 billion in cash and cash equivalents, which is a loss of more than €700 million from Q4 2011 and 24% down from Q1 2011.
By the end of Q1 2012 Nokia had 122,000 employees, 53,000 of them employed at Nokia’s mobile business.
The company also announced that it has sold their Vertu luxury business to EQT private-equity firm for an undisclosed amount.