Nokia is moving to slash costs by one billion euros annually as it struggles to compete in the fierce smartphone market.
It will lay off 4,000 people and transfer another 3,000 to technology services firm Accenture – that is 12 percent of its phone unit workforce.
Accenture will take over activities relating to Nokia’s Symbian operating system software and support future smartphones including those running on Microsoft’s Windows platform.
In an attempt to turn around its fortunes, Nokia unveiled a deal in February to start using Microsoft software instead of its own Symbian platform. Its market share in smartphones has fallen sharply over the past few years as it loses out to Apple and other makers of high-end handsets.
Nokia said most of the 4,000 layoffs will take place in Finland, Denmark and Britain, with all workers staying on the payroll through 2011.