Clear the decks: Nokia cuts 10,000 jobs in radical shake-up

Nokia is to lose 10,000 workers and transform its management team in a bid to return to profitability, the Finnish handset manufacturer has said.

A series of moves, which also includes the selling-off of luxury handset division Vertu and the acquisition of imaging technology from Scalado, was announced early on Thursday. The heads of Nokia's mobile phone, markets and marketing departments have also been ousted as part of the reorganisation.

Nokia is to cut 10,000 people from its workforce as it looks to 'broaden' the price range of its Lumia phones. Image credit: Ben Woods/ZDNet

"We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia," Nokia chief Stephen Elop said in a statement. "We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services."

Vertu is to be sold to the private equity firm EQT VI, although Nokia will retain a 10 percent minority stake in the business.

Nokia has not broken down its lay-off numbers by country indeed, the company's representatives refused to say how many people Nokia employs in the UK, let alone how many cuts will take place here. However, Nokia did say it would be closing research and development facilities in Ulm, Germany, and in Burnaby, Canada.

The company's manufacturing plant in Salo, Finland, is also going to be shut down, although R&D will continue at the site. Jobs will also go among Nokia's marketing, sales, IT, corporate and support staff, the company added.

"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," Elop said. "We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities."

Cheaper Lumia, better photos

The renewed focus on Lumia, Nokia's range of smartphones running Microsoft's Windows Phone OS, will make the devices "available to more consumers", the company said.

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Clear the decks: Nokia cuts 10,000 jobs in radical shake-up