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Nokia to cut 10,000 jobs worldwide

(Xinhua) Updated: 2012-06-15 07:29

HELSINKI - The Finnish mobile phone manufacturer Nokia announced Thursday that it plans to cut 3,700 jobs in Finland and up to 10,000 positions worldwide by the end of 2013 to save costs.

Nokia aims to chop expenditures by some 1.6 billion euros ($2 billion) by the end of 2013.

The company will close its plant in Salo, Southwest Finland, except for its product development unit, with a loss of 850 jobs.

At a press conference held at Nokia headquarters in Espoo on Thursday, Nokia CEO Stephen Elop said he was very sorry for the current situation. He pledged that the company's most important product development work and headquarters will remain in Finland.

Nokia's adjustment program also includes reorganization of its leadership team. Three executive vice presidents are to depart.

In addition, as part of the changes, Nokia is also selling its Vertu luxury phone unit to Swedish private equity firm EQT.

Shares of Nokia dipped well below 2 euros Thursday on the Helsinki Exchange following the job-cut announcement, from a peak of some 65 euros in 2000.

The Finnish government met on Thursday afternoon to discuss developments at Nokia. Prime Minister Jyrki Katainen said that taking care of those affected was essential and that Finland must not flinch from its long-term aid to promote growth.

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