Nokia cuts another 10,000 jobs as losses deepen..downgraded to junk status
Nokia is cutting another 10,000 jobs globally and has warned that second-quarter losses from its mobile phone business will be larger than expected.
The cuts bring total planned job cuts at the Finnish group since Stephen Elop took over as chief executive in September 2010 to more than 40,000.
Nokia will also book additional restructuring charges of about 1bn euros (£811m; $1.3bn).
Nokia shares closed down 18% and have slumped about 70% since February 2011.
“These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,” Mr Elop said in a statement.
If Nokia is to return its mobile phone business to profit, it will need to boost sales of smartphones, which now account for nearly a third of all mobile phone sales.
Nokia also announced it was selling its luxury handset maker, Vertu. The mobile phones are made from precious metals such as platinum. Some are encrusted with diamonds and sapphires and sell for as much as $310,000.
Moody’s ratings agency has downgraded Nokia’s debt grade to junk status, citing greater than anticipated pressure on the struggling mobile phone maker’s earnings after it announced plans for major cuts and global layoffs. It kept the outlook negative, meaning it could downgrade it again.
oh how the mighty have fallen..they didnt get “smart” and paid the penalty..