Nokia to cut another 3,500 jobs and close a factory

The cuts are in addition to thousands of job losses already announced by Nokia, which in April unveiled a 1bn-euro cost-cutting programme.

Nokia said it would shut its plant in Cluj, Romania, and cut jobs in its location division, whose products include maps for mobile phones.

It is also reviewing the future of plants in Finland, Hungary and Mexico.

“We must take painful, yet necessary, steps to align our workforce and operations with our path forward,” said chief executive Stephen Elop.

Nokia shares have almost halved this year and opened down 1.7% on Thursday, but staged a recovery and were 1% up by midday.

“Nokia plans to close its manufacturing facilities in Cluj, Romania, by the end of 2011… and plans to close its (locations and commerce development) operations in Bonn, Germany and Malvern, US,” by the end of next year, the company statement said.

Geoff Blaber, analyst at CCS Insight, said: “The scaling back of its manufacturing presence was sadly inevitable but it’s clear that Elop is not afraid of taking the tough decisions to ensure Nokia’s long-term survival.”

In July, the company plunged into the red as sales fell and margins were squeezed in the second quarter.

The firm made a net loss of 368m euros ($521m; £323m) in the three months to the end of June, compared with a profit of 227m euros a year earlier. Net sales fell by 7% to 9.3bn euros.

Nokia has lost ground to competitors such as Apple’s iPhone and phones using Google’s Android operating system.

Earlier this year, Nokia announced 7,000 job cuts worldwide – with 3,000 of the posts being transferred to consultancy group Accenture – as part of strategy to focus on smartphones.

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