Ten thousand jobs are set to be cut at global mibile phone company Nokia as the company’s shares fell to their lowest since 1996.
Its last remaining plant in Finland will continue to do research while the one in Germany will shut down completely.
In a second profit warning Nokia said it would post a deeper than expected loss in the second quarter.
“In a number of countries we will start the consultation process immediately and of course we will support our employees with severance packages and the bridge programme which has been developed here at Nokia to help employees move forward in their careers,” explained Stephen Elop, Nokia’s CEO.
Once one of the world’s dominant mobile phone providers Nokia was wrong footed by the rise of smartphones and the emergence of Apple’s iPhone.
Nokia dropped its own Symbian smartphone operating software and switched to Microsoft’s Windows Phone system.
Analysts have warned the outlook is not good saying its hard to judge how much lower shares could fall.
The company hopes to complete the closures and redundancies by the end of 2013.